Insurance Quote
When it comes to insurance, the more uneventful your life is, the better your insurance risk and ultimately the cheaper your insurance quote. Insurance is about mitigating the risks of owning an asset between you and the insurer. The more risk the insurer takes on themselves, the more expensive your insurance quote will be. While some risks are not within your capacity to reduce, others are, which means you can get a cheaper insurance quote just by understanding how insurance companies calculate an insurance quote.
Although each insurer measures your risk differently, they use similar demographics to calculate your insurance quote.
Age
Statistically younger insureds display more high-risk behviour, which increases the cost of an insurance quote. Unless it’s a life insurance quote, the younger you are, the more you’ll pay in premiums. Drivers under the age of 25 years pay more.
Gender
Historically, men are more risky than women for life and car insurance quotes. Although using gender as a demographic on which to calculate risk is illegal in Europe, it’s not in South Africa. This means, for the foreseeable future men will pay on an insurance quote.
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Value of the asset
No matter the type of insurance, the more cover you require the more expensive the insurance quote. More expensive homes, cars and moveable possessions are more of a risk than cheaper assets. The reason for this is that the insurer’s risk is greater for more expensive items. Life insurance, too, is influenced by the amount of cover you require.
Location of the asset
A car and home insurance quote is also influenced by the location of the home or the car. If the car is not kept in a garage behind a secure gate or wall, then the insurance quote will be more expensive. The same is true for the home, if it’s in a dangerous neighbourhood, the more chance there is of theft or damage and thus the more you pay. If there is risk of natural disaster in the area, the home insurance quote will be more expensive.
No matter the amount of your insurance quote, comparing them online can result in significant savings. The South African insurance market is competitive enough for competitive premiums.
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