Smart driving is the road to keeping your car insurance premiums low

December is looming ever closer on the horizon and this means that many South Africans will be looking forward to spending time away from home. This usually means long trips on very congested roads. Many South Africans often forget to double check their vehicle insurance while making holiday plans-often with disastrous consequences.

The insurance industry is constantly changing and your policy may be up for review. Before hitting the road, it is wise to check with your insurance provider that you are covered for any eventuality.

“When reviewing insurance, it’s good to search for competitive rates, but you need to consider all aspects of what the different companies offer, and not just give an insurer the green light based on price alone,” said Sarah Nicholson, commercial manager of Justmoney.

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She added, “Factors that can affect the cost of car cover include the exchange rate, cost of repairs, driver’s age and driving history, the area where you live, and the insurance period.”

If you are stretched financially and feel tempted to cancel your insurance cover, remember that you could end up in an even worse financial situation if your car is damaged or stolen.

“Even if you are the most careful driver, you are at great financial risk if you drive an uninsured or under-insured vehicle.”

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If you have borrowed money from a bank or finance company to buy your vehicle, legally it’s theirs until you’ve settled the debt. What’s more, in most cases, if you cancel or default on the insurance, you’re in breach of the finance contract.

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This means that if the car is damaged, written off or stolen, you’re still personally liable for the outstanding amount. This could place you in a precarious situation where you still owe a large sum on a car which you can’t drive, or no longer have – and still need a car to get to work and earn a living.

“Take care to familiarise yourself with the policy terms so that you know what is covered, and understand the compensation limits. The bottom line is that correct insurance is vital for your peace of mind and safety, and is not something you should cut corners on.”

Also be aware that there are a number of reasons why an insurance company may refuse to pay out a claim. For example, if there is reckless driving, if you are insured for personal use and use the car for business purposes, claim late, or don’t comply with the security arrangements, you could find yourself on a road to nowhere.

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“It is vital therefore that the cover is appropriate for your current situation and that you understand the terms and conditions.”

If you are struggling with the monthly payments there are more sensible ways to save motoring money than cancelling or defaulting on your insurance. Some tips include:

• Drive smartly: A smoother driving style will save you money. Try to avoid stop-start rush hour motoring which burns fuel and increases wear-and-tear. Take advantage of flexible work hours if you have them.
• Service regularly: Sticking to the service intervals ensures that your guarantee remains valid if your car is still under warranty. It also helps avoid huge, costly repairs.
• Reduce drag: Remove roof racks when they aren’t in use, which will boost your fuel economy.
• Tune tyres: Follow the manufacturer’s specifications and keep the pressure correct.
• Commute: Minimise travel costs by setting up a car pool with some colleagues.