Tips on how to save on car insurance in 2022
People often revisit their financial plans during January with the intention of saving more during the new calendar year. If you are currently in this process, one of the expenses that you can’t just drop from your budget is motor insurance.
Understand your policy to take control of your budget
The cost of living is rising even higher, with fuel prices recently having reached an all-time high and the prospect of a 20% hike in electricity charges. To make matters worse, car insurance premiums are expected to increase in 2022 at a rate beyond normal inflation.
It is important for consumers to understand why car insurance premiums increase.
Head of MiWay Blink, Christiaan Steyn, says,
‘Car insurance premiums are calculated based on a number of underlying factors, one of which is the expected cost of repairing a particular vehicle. The repair cost is typically split into three components – parts, paint and labour. In the current environment the increase in the cost of parts and paint is exceeding normal inflation. The ongoing global supply crisis due to the pandemic makes it more difficult to access car parts for repairs, owing to constraints on the shipping industry and supply and demand pressures. For example, the price of paint is said to have increased by at least six percent. A factor like this impacts the total cost to insure your vehicle
Review your policy
It is advisable to make sure that your car insurance policy fits your lifestyle and your budget. Some prefer to pay a lower monthly premium and opt for a higher excess while others don’t want to fork out a large excess amount when they need to claim and rather prefer to pay a higher premium every month.
Most insurers charge an additional premium for Car Hire. This benefit offers you a rental vehicle while your car is being repaired. If you now work from home and would be able to manage without your car for a week or two, you could lower your premium by removing this added benefit.
Pay less when you drive less
In 2022, many people will still be working from home or move to a hybrid office/home routine. It is advisable for them to switch to an insurer that offers rewards for limited driving.
A digitally-based insurance service, such as that offered by MiWay Blink, provides a cashback on the premium paid if one drives less than 2 500 km per month. The firm uses technology in its app to track the kilometres driven in a month, and then reward the driver automatically.