We have so many expenses that we need to pay each month. Strangely enough, we do not complain too much when making our bond payments, as we know that we have a house to go to each night. We have no issue with paying a lot of money on our clothing accounts – how else would we be able to afford our fancy clothes? Even the electricity account is paid with a smile as we do not want to imagine life in the dark without hot water and our television sets!

Then what’s the big with about having to pay car insurance premiums each month?

We need car insurance for the simple reason that if something goes wrong, we cannot simply take our cars to the rubbish heap and buy new cars! In a perfect world maybe.

You do not have to spend a small fortune on your car insurance policy. If you’re part of the group of people complaining about having to pay your car insurance each month, have a look at the following and see how much you can actually save on your monthly premiums!

The cheapest type of insurance that you can purchase is third party insurance. In the case of you causing an accident, you will be liable for the other party’s expenses. You will have to cover the repairs to their car, or in the case of a serious accident, you will be responsible for replacing the car! You can put in a claim against third party insurance when this happens. This type of insurance will however not cover your own damages and expenses and are usually taken out on older or less pricey cars.

When you put in a claim against your insurance, there is usually an amount that the insurance company will not cover. This is called the excess amount and is payable from your own pocket. By opting for a policy with a higher excess amount, you will usually be offered a discounted rate on your premiums.

If your car is fitted with added security, such as an immobilizer, alarm and tracking device, remember to mention this to your insurance company.

Shop around on the internet. Some companies offer discounted rates for policies bought over the internet. Going this route is also very convenient as you can compare anything from 3 to 5 policies in a matter of minutes.

Some insurance companies will lower your premiums if you’ve done an advanced driving course. This will also make you a safer driver on the road as you are taught how to handle the car in unusual situations.

By paying your insurance monthly, you are of course paying a lot of interest. The same as with any other account, you are charged interest on the total outstanding amount. If it is possible, pay your insurance for 12 months upfront. You will be saving a lot of interest and might even be offered a further discount on your total policy price.

Look after your credit record. Don’t pile up more debt than you can afford to pay off. Missing installments on your accounts, or frequently paying your accounts late will quickly label you as a “bad payer” and you will be regarded as a high risk client by insurance companies.

So stop complaining about your car insurance! Rather rest assured that you are covered in the case of an accident or other emergency.

For more car insurance information, go to http://www.insurance.co.za.