If you are researching short-term car insurance, you'll be sure to find out that prices are high, and could continue to rise. South Africa is a high risk environment for insurers. Knowing why and what you can do lower these costs for your situation is important in helping you make the right decisions.

First, why are the costs so high? Higher short-term insurance premiums are caused by the risks associated with car insurance, and South African roads have become considerably more treacherous lately. South Africa has one of the world's highest rates of traffic accidents and fatalities. Driving privileges have been extended to many people who don't know how to drive properly.

As carmakers continue to upgrade their offerings, prices reflect those gadgets, leather seats, on-board computers and more. As car prices go up, so must the cost to insure them. Younger drivers have always been viewed as a higher risk. Drivers aged 18-30 historically pay the highest rates.

Insurers should consider that car theft and hijackings when they calculate their premiums. Statistics show a decline in thefts while hijackings continue to rise. In the homeowners insurance market the main factor is fraud. Some estimate that 6%-10% of short term insurance claims are fraudulent, that amounts to more than $2 billion yearly.

It is possible to ensure that these issues do not impact your insurance situation. You may not have any control over other people making fraudulent claims, but there are steps you can take to ensure that they do not affect your insurance premiums. For example, you can offer to take a polygraph test whenever you submit a claim. As a reward for honesty, some insurers will give you significant savings on your premium.

You can decrease your auto insurance premium by increasing your deductible. Keep this in mind while you are comparing quotes. Just make sure that you can afford the higher deductible in case you have a claim.

You need to keep a clean driving record because the more claims you have the less risk you have. If you already have an unclean driving history you can research driving courses that are offered by automobile manufactures and the Automobile Association, that can help offset negative history. This can be done by good drivers also. Most insurance companies will consider a reduction in your premium if you are able to attend and pass one of the courses.

And, if you live in a high-crime area, consider moving. This can reduce both your car and homeowners insurance rates. Adding security devices can help as well. Anti-hijack devices and global tracking systems are good investments for this purpose.

You should look around for the best rates, but don't just go for the cheapest. Make sure the policy you choose is adequate as well as affordable.