South Africa: Why Did No One Tell Drivers About These 6 Massive Discounts?
Six surprising discount opportunities show that insured South African drivers may have overpaid. This is the trick your car insurer does not want you to know.
Those paying the average car insurance rate may save 29% by finding the right insurer.1
After much research and feedback, we've posted the following list of discounts that may very well help you find a winning insurance company. Without this guide, many of these discounts are difficult to find online, but please contact us if we've missed any discounts or if they've changed. Find our top 6 below (and how to save the most with them).
There are a few insurers that will give a discount for having no car accidents in the last year. This shows to an insurer that you're skilled at avoiding accidents and your care while driving. Also, low mileage drivers save too. It varies by insurer but it could be if you average less than 66 km a day.
If you are over 25 years old, you are in at least one of two age brackets that will give you an extremely high discount. Each insurer greatly varies their discounts. Companies have a risk-calculator that assumes drivers become careful as they age. The surprising part is that a 24 and a 25 year old will pay dramatically different rates at one insurer, but nearly the same rate at another insurer. These exact age brackets vary by the insurer because they all use different sets of data they analyze.
The popular age brackets are if you're over 25 years old, you get the largest discount. Being between ages 25 to 55 will give large savings. However, those over 55 often get further savings because they get a retirement or "pleasure use" discount.
Next, to max out your savings, this brings us to vehicle discounts.
If your car is parked off the street most nights, has a factory-installed alarm or tracker – you qualify for a discount. If you qualify for 2 or 3 of these discounts, the savings may be extremely high. If you have a car alarm or theft-deterrent features because they're now less likely to have to replace your vehicle.
Additionally, if you live in a qualified postal code or neighborhood without a lot of thefts, you can save even more. Has your agent told you these discounts?
Consumer watchdog groups have warned that most major insurers unfairly hike up loyal customers’ rates just to maximize profits – insurers call it “price optimisation.” This means your insurer goes through your shopping data and whether or not you're loyal customer of certain companies. Based on their results, they'll give you the highest rate they think you'll spend. You never know when they will randomly increase your rates (at least, this is what it seems to be).
The rule to fight back is simple. To get the biggest savings, comparing discounted rates may help you find that winning car insurer.
There are many South African car insurers. Which insurer will give you the best rate?