When thinking about purchasing a new car, whether it is a premium or luxurious upgrade, it is crucial to keep in mind that several factors will determine the cost of your insurance premiums. In South Africa, insurance companies assess the risk of insuring a specific car by evaluating several key factors.
Firstly, insurance companies consider the make of the car, model, and year. Different cars have varying levels of risk associated with them, based on factors such as their safety ratings, repair costs, and likelihood of theft. For instance, high-performance cars are often more expensive to insure than those with smaller engines. This is because larger engines have more power and are often associated with higher speeds, which can increase the risk of accidents and result in significant damage.
Secondly,…