Insurance premiums are influenced by a number of factors, which aren’t always common knowledge. The free to use online insurance and financial website, Hippo.co.za, provides insight on what factors may affect your cover.
When considering changes to your vehicle, take note of how the below factors may affect your vehicle insurance premiums:
Credit and claims history
Your financial and claims history is taken into account when determining your risk profile. A lower or negative credit score and frequent rate of claiming results in higher insurance premiums. Ensure that you honour all financial commitments to keep your credit score up. You should refrain from claiming for smaller damages as this will keep your risk profile lower and result in lower premiums upon the renewal of your cover.
Your profession
According to MoneyCrashers.com, your profession influences your potential risk. Journalists, photographers and delivery persons are more likely to be on the road and therefore the risk of accidents is higher than, for example, that of a person who is office bound. Paramedics, policemen and insurance underwriters are regarded as safer drivers, resulting in a lower risk profile. When looking to change careers, be aware that more frequent driving will increase your vehicle insurance premium.
Colour of your car
Ensurance.com reports on a study conducted by an Australian University that links vehicle colour to accident risk. Based on statistics, the study found that white cars posed a lower accident risk whereas black, navy, and red cars posed a higher accident risk. When considering what colour car to purchase or changing the colour of your current car, note that lighter colours such as white and silver could result in lower premiums.
Where you park your car
The risk address where your car is parked overnight and during the day will also affect your insurance premium. If your car is parked in a security estate with guards at the entrance and in a locked garage, you may benefit from lower premiums than if your car is parked under a car port at a freestanding home or an open parking bay in front of an office. Other factors such as the area or location in which the car is parked also affects insurance premiums.
At least eight out of 10 people could save over R427 per month on their car insurance buy comparing quotes and benefits on our free to use site.
For more information, visit the Hippo.co.za website.
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