Insurance companies in South Africa, including us, take many factors into account when calculating the premium you have to pay to buy car insurance. Some things are obvious to everyone, even those who don’t know much about insurance, such as the make, model and value of the car itself. It’s even logical to assume that we need to know where you park your car every night since these are security related Information affects how much risk your car needs to insure.
But what are the other personal details that could push your premium up or down? The answers can only surprise you. There’s even a bonus surprise at the end, so read on!
What do you do to earn your living
If your job involves a lot of driving, then maybe you’re just paying more. Think of delivery drivers, salespeople and consultants who drive to their customers. 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 to cover that extra risk.
Just a note on this specific factor… If you use your car for business rather than social reasons, you need to let us know so we can update your policy to reflect “business use”. If your policy does not state the correct use, future claims may be denied.
how much you drive
It’s a truth universally accepted among auto insurers that the more you drive, the more likely you are to be involved in an accident. For this reason, many insurers will ask you to estimate how far you drive each month during the quoting process.
Your age and how long you have been driving
Many auto insurers consider drivers over the age of 75 to be “higher risk” and therefore pay higher premiums. That’s not entirely wrong, because after a certain age you can struggle with things like eyesight, dexterity, and slowed reactions.
But it is not that easy. At King Price, we don’t just look at whether you’re getting on in years. We also take into account how long you have held a valid driver’s license. So let’s say you are a respectable 37 year old who has only had a driver’s license for 2 years. You may be in the same higher risk category as a 22 year old who has only had a driver’s license for 3 years, despite being older and more experienced at the game of life.
The truth is that novice drivers have less experience driving and are therefore more likely to get into a car accident. That’s why we pay attention to both your age and how long you’ve held a valid driver’s license.
You improved your car
Sometimes when people think of “modifications” they think of installing a Fast and Furious level engine… And that counts for a lot when we’re asking about upgrades made to your car. But we want to know so much more than the obvious. Tell us how you took care of your baby and helped everything run more smoothly, from the expensive speakers to the in-car entertainment system.
Not all changes automatically lead to a premium increase. If you have equipped your car with an immobilizer and tracking device for safety or even rear sensors to make reversing safer then tell us. You could save your premiums!
That is why you must tell us every little improvement and modification that you have made to your car.
Your marital status
This could go one of two ways (but we still need to know). If your spouse will also be driving your car, they will be added as the named driver and will share the driving, splitting the risk between two people. This could actually work in your favor and lower your premium, but to find out we need to know your spouse’s driving history.
Let’s say your spouse has a history of claims (even if the incidents aren’t all his fault). If this is the case, your policy risk increases and could result in a higher premium. However, if your other half has had no claims in the past, you could benefit from an even cheaper premium.
Bonus: The decreasing bonus secret
Okay, so this is hardly a secret. We can’t shout it louder! (We even put it on billboards nationwide.) When you buy Collision Damage Waiver with the King, your premium is guaranteed to go down every month. We take the depreciation of your car into account and recalculate your premium accordingly. And we do this every month to ensure your reward stays fair throughout.
Interested? Call us on 0860 50 50 50 or
Click here to get an offer today.