Buckle up, South Africa! If you thought your car insurance costs were high last year, brace yourself because prices are still climbing faster than your morning caffeine fix. Did you know that it cost the average South African 39.41% more per month in 2022 to keep a car on the road than it did five years prior? Yep, that’s right! Back in 2017, it set you back around R6,711.24 per month to own a car. By 2025, that number had rocketed to R9,356.80! That includes vehicle finance, fuel, maintenance, and of course, insurance.
Understandably, everyone’s on the hunt for ways to cut costs without cutting corners. That’s why we’re here to break down how insurance premiums are calculated and share some royal wisdom on keeping your insurance costs down.
How much does car insurance cost?
Insurance premiums aren’t one-size-fits-all (if only life were that simple). But to give you a rough idea, here’s what you can expect to pay in 2025:
- Third-party insurance: The no-frills, budget-friendly option covering damage to others’ cars or property. This usually costs between R200 and R500+ per month.
- Comprehensive insurance: The VIP package! Covers damages to your car and others, theft, fire, and more. Expect to fork out between R800 and R2,000+ per month.
Want to know what it’ll cost to insure your ride? Get a quick quote today!
How car insurance costs are calculated
Insurance companies don’t pull numbers out of thin air! They use some serious maths (and a little magic) to determine your premium. Here’s what goes into the mix:
- Vehicle value: The more your car is worth, the higher your premium.
- Your driving history: Saints on the road get lower premiums; speed demons, not so much.
- Location, location, location: Living in a high-theft area? Your premium will be higher.
- How much you drive: More mileage means more risk.
- Security features: If your car has tracking, alarms, and immobilisers, you could save big.
- Your age and experience: Young or inexperienced drivers pay more.
- Your job: If you drive a lot for work, your premium will likely be higher.
- Excess choice: A higher excess lowers your premium (but increases your out-of-pocket cost if you claim).
Choosing the right cover: Third-party vs. comprehensive insurance
Third-party, fire and theft insurance: ✔️ More affordable than comprehensive ✔️ Covers damage to others’ property and vehicle theft ✔️ Ideal for budget-conscious drivers ❌ Won’t cover your own car if you’re in an accident
Comprehensive car insurance: ✔️ Covers accident damage to your car and others ✔️ Theft, fire, vandalism, and natural disasters included ✔️ Extra perks like roadside assist often included ❌ Costs more than third-party insurance
Still unsure? Give us a call and we’ll help you decide.
The king’s top tips to save on car insurance
👑 Bundle your policies: Insure multiple cars (or add home insurance) and score a discount. 👑 Increase your excess: This lowers your monthly premium, but you’ll pay more if you claim. 👑 Park like royalty: Secure parking = lower risk = lower premiums. 👑 Drive less: If you drive under 15,000km per year, you could qualify for a low-mileage discount. 👑 Install security features: The more security, the lower your premium. 👑 Get insurance that decreases monthly! We’re the only insurer in the world where your premium drops as your car loses value.
FAQs about car insurance in South Africa
1. Is car insurance mandatory in South Africa? No, but unless you have a money tree in your backyard, it’s highly recommended.
2. How can I lower my car insurance premiums? Bundle policies, increase your excess, drive safely, and install security features.
3. Does car insurance cover theft? Comprehensive insurance does. Third-party? Not so much.
4. Are older cars cheaper to insure? Generally, yes! But classic cars need specialised insurance.
5. Can I insure a car that’s not in my name? Depends on the insurer—check their policy terms.
Get a personalised car insurance quote today!
Looking for car insurance that makes sense? Let’s get you covered with a policy that fits your needs and budget. Get a commitment-free quote today and see how much you could be saving with the king of insurance.
