Insurance companies in South Africa, us included, take a lot of factors into consideration when calculating the premium you’ll pay to get car insurance. Some stuff is obvious to anyone, even those who don’t know a lot about insurance, like the make, model, and value of the car itself. It’s even logical to suppose that we’ll need to know where you park your car each night because this safety-related info affects how big of a risk your car is to insure.
But what are the other pieces of personal data that could push your premium up or down? The answers may just surprise you. There’s even a bonus surprise at the end, so keep reading!
What you do for a living
If your job involves a lot of driving, then you might just pay more. Think of delivery drivers, salespeople, and consultants who drive to their clients. These professionals spend more time on the roads and are more likely to be involved in an accident. The result? Well, their premiums will be higher in order to cover this additional risk.
Just a hint on this particular factor… If you’re using your car more for business than social reasons, then you’ll need to disclose this to us so that we can update your policy to reflect ‘business use’. If you don’t have the correct use noted on your policy, any future claims could be rejected.
How much you drive
It’s a truth universally acknowledged amongst car insurers that the more you drive, the more likely it is that you could be involved in an accident. That’s why a lot of insurers will ask you during the quoting process to estimate how far you drive on a month-to-month basis.
Your age and how long you’ve been driving
Many car insurers consider drivers over 75 years of age as being ‘higher risk’ and as a result they pay higher premiums. This isn’t altogether incorrect, because from a certain age onwards you can struggle with things like eyesight, dexterity, and slowed reactions.
But it’s not that simple. At King Price we look at more than whether you’re getting on in years. We also take into account how long you’ve held a valid driver’s licence. So, let’s say you’re a respectable 37-year-old who’s only had a driver’s licence for a mere 2 years. You may be in the same higher risk category as a 22-year-old who’s only had a driver’s licence for 3 years, even though you’re older and more experienced at the game of life.
The truth is that new drivers are less experienced on the roads and this means they’re more likely to find themselves in a car accident. That’s why we look at both your age and how long you’ve held a valid driver’s licence.
You’ve improved your car
Sometimes people think of ‘modifications’ as putting in a Fast and Furious level engine… And this does count a whole lot when we ask about improvements made to your car. But we want to know so much more than the obvious. Tell us about how you’ve looked after your baby and helped things run smoother, from the expensive speakers to the in-car entertainment system.
Not all modifications automatically result in a premium increase. If you’ve kitted your car out with an immobiliser and tracking device for security or even rear sensors to make reversing safer, then tell us. You could save on your premiums!
That’s why you need to tell us about every little improvement and modification you’ve made to your car.
Your marital status
This could go 2 ways (but we’ll need to know regardless). If your spouse is also going to be driving your car then they’ll be added as a named driver and they’ll share the driving, which splits the risk across 2 people. This could actually work in your favour and decrease your premium, but to figure this out, we need to know about your spouse’s driving history.
Let’s say that your spouse has a history of claims (even if the incidents aren’t all their fault). If this is the case, then the risk on your policy is increased and could result in a higher premium. However, if your other half has a history of no claims, you could benefit from an even cheaper premium.
Bonus: The decreasing premium secret
Alright, so this is hardly a secret. We can’t shout about it any louder! (We’ve even put it on billboards across the nation.) When you take out comprehensive car insurance with the king, your premium will decrease every single month without fail. We do this by taking into account the depreciating value of your car and then recalculating your premium accordingly. And we do it every month to make sure that your premium stays consistently fair.
Interested? Call us on 0860 50 50 50 or
click here to get a quote today.