We all want to secure the lowest insurance premiums on our cars, whilst still receiving excellent service. These premiums are determined by our own demographics, such as our age, gender, and profession, as well as the type of car we own. It’s often assumed that the older a car is, the lower the premium will be. However, Lizette Erasmus, insurance expert at IntegriSure, pointed out that this is actually not the case.

“There is no rule in insurance that the older the car, the lower the premium. Sometimes newer cars may have better safety features, lessening the risk – ultimately lowering the premium you pay,” she said.

The value of the car does, however, have an impact on the value of the monthly premiums. The more it costs insurance companies to repair or replace parts of the car, the higher the premiums will be. Besides this, the value of the car also influences its desirability on the black market. If insurance brokers believe your car has a higher risk of being targeted by criminals, they are likely to request higher premiums from you.

Another consideration is whether the car is seen as a high-performance car, like a convertible or a sports car. More often than not, these cars are driven faster than other cars. “At onboarding stage, insurance sales agents ask specific questions, including whether the car in question has been performance enhanced,” Erasmus explained.

“It is important to disclose all pertinent information at this point, to ensure the claims process is hassle-free when an incident occurs and you need to submit a claim,” said added. In other words, withholding information on the state of your car may save you money today, but it will inevitably lead to even larger losses in the future.

Erasmus advised that not only the cost of premiums get taken into account, but also the loss to be recovered.  “It is important to decide whether you will take up comprehensive cover which covers for all insurable events, or third-party cover which covers the third party involved in an incident where you are at fault,” she said.

With so many things to consider when looking at car insurance, Erasmus also points out that you can have your premiums lowered if you improve the safely features on your car. Insurance companies take favour on those who make responsible decisions for their cars, and installing an immobiliser or a tracking device can lead to lower monthly premiums.