subject: Strategies For Acquiring Affordable Automobile Insurance For Low-mileage Drivers [print this page] For a lot of people, purchasing insurance is a job they accept not because they wish to but because they really need to. In a number of countries like Great Britain, for example, it's required by law for vehicles to be covered by insurance and even though it's not yet the case in South Africa, it is simply too hazardous drive an automobile without it. Automobile coverage is most assuredly essential these days and a thing which is certainly risky to forgo.
First of all, there is the chance of being involved in a car collision or having your car stolen or hijacked. What's more, considering the accounts of hailstones as big as golf balls wreaking damage in Gauteng recently, there is more than an outside likelihood that your car could be susceptible to getting damaged due to unfavorable weather conditions too. At the very least, you need to be insuring your automobile for so-called 'third party, fire and theft' coverage but comprehensive insurance is better still if you can afford it.
However, in spite of the fact that car protection is a necessity it can nonetheless be a hard pill to take when you do not drive much. If you are a retired individual or someone who works from home you might have landed in the undesirable situation of having to pay more for your auto insurance than you'd like. Thus if you haven't already been researching ways to lower your automobile insurance costs then it would be wise to start now because you could possibly save yourself some money.
As a general rule, if your automobile is insured at market rate then you need to be revisiting your automobile insurance policy on an annual basis regardless of whether you do a lot of motoring or not. The reason is , an automobile is a diminishing asset hence its worth is likely to drop with each passing calendar year. It's very unlikely that your automobile insurer will automatically modify your insurance policy in line with your car's annual decrease in value on your behalf, so you are going to have to call them up and tell them to do it. By doing this, you can potentially lower your regular monthly premium rate a little bit.
Another way to lower your monthly premium is to raise your excess. On the other hand, this usually means you could be liable to pay an excessively high amount of excess if you happen to have to claim from your vehicle insurance policy further down the road. Moreover, you'll either need to be extremely self-disciplined and put money aside to cover the higher excess or else be prepared to survive on bread and water in the event that you need to claim at some point in the future.
People who do not drive a lot, however, have got the extra advantage of being in a position to get coverage at a reduced rate because they can sign up for what's known as 'pay as you go' or Pay As You Drive coverage. This kind of coverage has all the benefits of comprehensive insurance, just at a reduced rate, because the policyholder merely pays for the amount of kilometres they drive in a given month.
by: Toby Shivley
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