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Did you know that moving could change your insurance premium? We look at this and other life changes that you need to let your insurer about.
Insurance can be a temperamental creature.
Each year, your premium can either increase or decrease depending on your risk profile. In theory, it should decrease annually due to the value of your car decreasing. This, however, is not always the case and many customers find that suddenly, their premiums have increased after a year by around R150 to R200.
We automatically re-assess your premium annually to see if we can lower the amount you are paying for insurance!There are some cases, however, that you could find yourself spending more on insurance due to certain changes in your life. If your risk profile changes in any way, your insurer needs to know about it in order to align your premium to your new life. So, just what are the changes that you need to let your insurer know about? What will affect your policy? We look at the changes below.
Have You Moved?
Changing your address is quite a big life change. Not only do you need to let all of your providers know, but you need to let your insurer know too. Moving into a new area could increase or decrease your premium depending on the safety of the area. Moving into a high-risk area will, unfortunately, increase your risk profile, and you could end up paying more for a premium. Perhaps, however, you could be moving to a new home with a garage or parking behind a locked gate. Let your insurer know about these changes and see if your premium can be reduced a bit. Don't, however, not inform your insurer of a change if you believe you will be paying more. Should you fail to inform your insurer of the change, and the worst does happen, the insurer will refuse to pay the claim. At the end of the day, you are better off informing them.
Have You Changed Jobs?
Have you moved into a new career? Gotten a promotion? Changed the location of your job completely? Letting your insurer know about these changes are vital. Firstly, your new pay grade could affect your premium. Your risk profile could be improved or decreased based on what you are now taking home. Should you have changed offices, your new work address could impact your profile based on the location, the risk of the area and where you are parking your car. The amount of driving will also change your profile. If you are suddenly going to be on the road a lot more, or if the distance to work is significantly different, this could affect it.Are You Using Your Car Differently?
Times are tough. You might need to start using your car as a second income. Whether it's being an Uber driver or delivering pizza, should your car suddenly be used as a business tool, your insurer needs to be informed. Keep in mind, if you don't let them know, and you are in an accident, the chances are high that your claim won't be paid out! Also, if you are going across the border, letting your insurer know is vital.Are There Going To Be Additional Drivers?
If you have listed yourself as the primary driver, the risk profile has only been conducted on you. Should you have someone else driving your car, the risk profile will be altered slightly. If this person is in an accident without the insurer being aware, they can refuse to pay out the claim. Should the additional driver be a teenager or new driver, it is even more important to let your insurer know. In the same way, if you are removing a driver, letting the insurer know could decrease your premiums slightly.
Are You Modifying Your Car?
That additional sound system or turbo booster may raise your street cred, but it is probably going to raise your premium too. Any engine modification to your car or any enhancement of performance will increase your chances of having an accident. That new sound system is also quite expensive to replace, so if it gets stolen, the first people you will turn to is the insurance company. If you haven't informed them of the installation though, they simply won't be able to help you!Will You Be Storing Your Car?
If you have the case of the itchy feet and will be getting out of the country for a few months, it's important to let your insurer know. If the car will not be used for a few months, or if you are putting it in storage, your premium could be affected. Remember to let them know when you are back though! A sudden claim for a car that is supposed to be in storage could raise a few questions!Read More About how your premium is made up below