How to get cheaper CAR INSURANCE

D

DBM

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If you would like to get a cheaper car insurance premium then this post is for you. All you need to do is call your car insurance company (I usually get them to call me back by posting a request for a call back online), and then tell them that you want to cancel your contract. They'll ask you 'why' and you'll reply telling them that you 'have found a cheaper quote from another company'. Then they'll ask 'how much will be your new premium' you reply by giving them a fictitious lower figure. Then they'll give you a counter offer first by removing a few benefits. You must decline this initial offer and tell them that 'you'll only stay if they reduce the premium but not remove any benefits'. They'll give you another second offer and I guarantee you that you'll be very happy with it. Please comment and give others encouragement if it work-out for you. If they don't give you any offer at all, just tell them you don't want to cancel at all and everything goes back to normal (Nothing lost).
Cheers
 
DBM said:
If you would like to get a cheaper car insurance premium then this post is for you. All you need to do is call your car insurance company (I usually get them to call me back by posting a request for a call back online), and then tell them that you want to cancel your contract. They'll ask you 'why' and you'll reply telling them that you 'have found a cheaper quote from another company'. Then they'll ask 'how much will be your new premium' you reply by giving them a fictitious lower figure. Then they'll give you a counter offer first by removing a few benefits. You must decline this initial offer and tell them that 'you'll only stay if they reduce the premium but not remove any benefits'. They'll give you another second offer and I guarantee you that you'll be very happy with it. Please comment and give others encouragement if it work-out for you. If they don't give you any offer at all, just tell them you don't want to cancel at all and everything goes back to normal (Nothing lost).
Cheers
Click to expand...

Ok, so I've done this and I wasn't happy with the second offer. What does your guarantee get me?

BTW, you have technically commited fraud by giving them a fictious figure without any real quote to back it up..
 
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I could very well be wrong, but I'm pretty sure if your car is financed, they won't accept that unless they have a letter from another insurer stating that they're taking over?
 
Actually how it works is the market value of your car is always dropping, however, they keep your initial market value for the premium calculation. Every year your premium is increased but the market value stays the same.

What they are doing when you ask for a better rate is they are dropping your market value to what it should currently be and then recalculating the rate. They also have a small margin that they can give you if you press them, but if you press them for a too large drop they will rather let you leave.

However, don't think you can drop your premium by very much with this 'trick'
 
You will pretty much never ever get a premium that is lower than 3.5% of the total value of the vehicle annually. (Well for motorcycles anyway, but I would imagine cars are the same or close).

So COST OF CAR * 0.035 / 12 to get a monthly amount.

It will be slightly higher than this unless your broker is your best friend, but ultimately if you expect it to be less than this then your expectations are buggered.
 
Believe me it works. That's if your risk profile is very low.
 
Actually they did with my car. If your risk profile is low like mine they can reduce it. I've never claimed for 6 years I've owned a car.
 
Mine dropped from R740 to R460 for a 2006 vw polo classic 1.6
 
According to your formula I should be paying R175 which is impossible. My car is worth 60k book value.
 
DBM said:
According to your formula I should be paying R175 which is impossible. My car is worth 60k book value.
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Obviously there is a base line value for third party insurance etc otherwise they wouldn't make any money.

I don't know what that is unfortunately.
 
I just got my annual increase letter from Auto and General. My premiums are going up from R960 to R1170 for a vehicle that is only worth around R105k. They've also increased my excess to R4800. Going to give them a call on Monday to fight the increase as it is ridiculous. I'd rather just go for 3rd party insurance than pay that much.
 
SaiyanZ said:
I just got my annual increase letter from Auto and General. My premiums are going up from R960 to R1170 for a vehicle that is only worth around R105k. They've also increased my excess to R4800. Going to give them a call on Monday to fight the increase as it is ridiculous. I'd rather just go for 3rd party insurance than pay that much.
Click to expand...

Rather phone mutual and federal or santam.
 
Why not just call them and ask for a lower premium as you are shopping around. With outsurance on the attack, any insurance company will be open for negotiation.
 
SaiyanZ said:
I just got my annual increase letter from Auto and General. My premiums are going up from R960 to R1170 for a vehicle that is only worth around R105k. They've also increased my excess to R4800. Going to give them a call on Monday to fight the increase as it is ridiculous. I'd rather just go for 3rd party insurance than pay that much.
Click to expand...

Then you must not come here and moan if your car gets damaged and you only have 3 party and "it wasn't your fault" and the other guy has no insurance or his insurance doesn't play ball.

You know why I say this? Cause its happened before.
 
I use a broker. He recalculates our insurance basket and uses his leverage to give us a good deal.

When doing this you don't cherry pick individual items when comparing, you look at the entire offering and the value of having someone else fight your battles.
 
SaiyanZ said:
I just got my annual increase letter from Auto and General. My premiums are going up from R960 to R1170 for a vehicle that is only worth around R105k. They've also increased my excess to R4800. Going to give them a call on Monday to fight the increase as it is ridiculous. I'd rather just go for 3rd party insurance than pay that much.
Click to expand...

Never drop your insurance, go somewhere else.


In January I was without medical insurance for 1 day and ended up in hospital. Cover stopped the Friday, the Saturday I was in emergency. Cost me R30K immediately and another R40K since then.


Had the reverse with wife's car. Hours before she left for a long trip she discovered her car was no longer insured (long story). We insured it immediately with First For Women. The next week she cracked her windscreen badly when a large stone hit it. That R700 premium covered R5K damage.


This is what insurance is all about.
 
So many insurance experts with little knowledge.
Some comments are on par some are just plain and simple BS.

Get and work through a decent broker, never go without insurance even if you have to increase excess's etc to reduce premiums.
If a company doesn't work through brokers don't use them.
 
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