At King Price Insurance, we’re here to handle all your insurance needs with a touch of humor. Whether you need to insure a pricey item, remove a car from your policy, manage a claim, or have questions about your cover, we’ve got you covered.
One common question we often hear is: Why does a person’s car insurance premium increase every year? Let’s break it down in simple terms.
Factors Affecting Your Car Insurance Premiums
It’s important to note that your car insurance premium doesn’t always automatically increase. While increases are more common, your premium can also decrease depending on various factors. Let’s explore the main reasons why your premium might change during the annual review process.
Inflation and Rising Costs
One of the primary reasons for premium increases is inflation. As the cost of living rises, so do the expenses associated with repairing or replacing your insured items. Exchange rates can also impact the cost of imported parts, leading to higher repair costs and, consequently, higher premiums.
Changes in Personal Circumstances
Your personal information and claims history play a significant role in determining your premium. Positive changes, such as gaining more driving experience or maintaining a clean claims record, may lead to a decrease in your premium. On the other hand, multiple claims in the past year could result in an increase.
External Factors
The world around you also influences your premium. Factors like increasing potholes, frequent loadshedding incidents, and rising crime rates can lead to more claims, potentially causing your premiums to increase.
How to Reduce Your Car Insurance Premiums
We believe in empowering South Africans to make informed decisions about their insurance. Here are some steps you can take to potentially lower your premiums:
Review Your Cover
When we notify you of a premium change, take the opportunity to review your cover. If you’ve paid off a loan, removed or added items to your policy, or no longer need certain additions, let us know so we can adjust your premium accordingly.
Adjust Your Excess
Consider increasing your excess to lower your premium. Just ensure the excess remains affordable for when you need to make a claim.
Implement Risk-Reducing Measures
Taking steps to reduce the risk of claims, such as installing burglar alarms or completing advanced driving courses, could lead to lower premiums.
Compare Policies Carefully
If you’re comparing quotes from different insurers, make sure to compare policies with similar cover, excesses, and fees to get an accurate picture.
King Price: Your Trusted Insurance Partner
At King Price, we prioritize building long-term relationships with our clients. We guide you through the insurance renewal process, ensuring you understand your cover and pay a premium that aligns with your needs and budget.
If you’re not already part of the King Price family, why not check us out? With King Price, you’re getting more than just insurance – you’re getting peace of mind, affordable premiums, and exceptional service.
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Click here, WhatsApp us on 0860 50 50 50 or leave your details below for a commitment-free car insurance quote.
Disclaimer: This blog provides general information only and does not constitute financial or product advice from King Price or our legal and compliance experts. All premiums are risk-profile-dependent, and terms and conditions apply. Our most up-to-date policy wording (KPPD) can be found here, and our website terms and conditions can be found here.
