Every insurer has different policies and procedures when it comes to your insurance, and while some may offer excellent premiums and great service, others will simply say that they do. So how do you sort the wheat from the chaff? Simple.

Ask your insurer about their ability to cover multiple policies. You may find that if you insure more than one car with your insurer, you will get a discount. This is a great way to save money, especially if you have more than one car to insure. If you can bundle your car, home and life insurance, this is even better.

Also ask your insurer to take your particular life situation into consideration. You should not be charged in the same way as someone who lives or works in a high risk area. If your car is parked inside a locked garage at night, why should you pay the same premium as someone who parks on the street?

Also note that the type of vehicle you drive is also important. Sports cars generally carry a higher premium than small hatchbacks, while a car without a tracking system will be more expensive to insure than one with a tracker. Also important is the car’s sound system, the tyres, any anti-hijack devices and window tinting. All of these things need to be considered when your unique premium is constructed.

The distance you drive should also be on the premium. After all, your chances of having an accident if you drive just 5km is less than someone who may be driving 50km on a daily basis. It is all about the law of averages and your insurer should be taking all of these into account.

If you are not sure that your insurer has set up your risk profile according to the points mentioned here, you may need to look around for a new insurer. The business of insurance is all about managing risks, and if you have a lower risk profile, you should be paying a lower premium for car insurance and for other types too.