The cost of car insurance in Mzansi: What you need to know
Did you know that keeping a car on the road in South Africa costs, on average, 39.41% more per month in 2022 than it did five years ago? That’s right! Back in 2017, the total monthly cost of car ownership sat at a manageable R6,711.24. Fast forward to today, and you’re looking at a steep R9,356.80 per month—ouch! This total includes vehicle finance instalments, fuel, running costs, and, of course, car insurance.
With petrol prices that fluctuate more than your mood on a Monday morning and the cost of living climbing like a cat up a curtain, it’s no wonder that South Africans are desperately looking for ways to save. Enter: car insurance. Understanding how much you’ll be paying monthly (and how to pay less) is more crucial than ever.
So, let’s break it down: How much can you expect to pay for car insurance in SA, how are these premiums calculated, and most importantly—how can you pay less?
How much does car insurance cost in 2024?
The average cost of car insurance in South Africa
While the exact amount varies from policy to policy, the average South African driver pays around R1,322.13 per month for car insurance. But before you let out a dramatic gasp and consider cancelling your insurance altogether (which we strongly advise against), let’s dig a little deeper.
3 real-life car insurance examples:
- A 49-year-old woman insures her 2019 Hyundai Atos 1.1 Motion for just R385 per month, with an excess of R4,500.
- A 40-year-old man covers his 2019 Suzuki Swift 1.2 GA for R530 per month, also with an excess of R4,500.
- A 34-year-old woman gets her 2021 Renault Kwid 1.0 Climber covered for R421 per month, but with a lower excess of R2,500.
See the difference? Your monthly premium can be surprisingly low depending on factors like your age, car model, driving habits, and, of course, your choice of insurer (hint: King Price gives you decreasing premiums!).
What influences your car insurance premium?
It’s not just about picking a number out of a hat and calling it a premium. Insurance companies use a bunch of factors to determine how much you’ll pay every month.
Key factors that affect your car insurance premium:
- The level of cover you choose: Comprehensive car insurance will always cost more than third-party-only cover.
- Your job: If you’re driving all day for work, your risk is higher. A sales rep clocking 1,000 km a week will pay more than someone who works from home.
- How much you drive: The more time spent on the road, the higher the risk. Simple maths.
- Your age & driving experience: A 21-year-old with a fresh licence will likely pay more than a 35-year-old who’s been driving for years.
- Car modifications & security: Installed a fancy immobiliser or a tracking device? That could reduce your premium! On the flip side, if you’ve gone full Fast & Furious with modifications, expect a higher premium.
- Where you live & park: A secure garage in a quiet suburb = lower premiums. Parking on the street in a high-theft area? That’s a higher risk.
How to keep your car insurance premium lower
With the cost of living shooting through the roof, we get it—saving on your insurance premium is a must. Luckily, there are a few tried and tested ways to keep your car insurance costs down:
1. Increase your excess
Your excess is the amount you agree to pay if you claim. The higher your excess, the lower your monthly premium. Just make sure you can actually afford the excess if you need to claim!
2. Bundle your insurance policies
If you insure two or more cars with King Price, you’ll get a 20% discount. Add buildings and home contents insurance, and you could save even more!
3. Drive less
Some insurers offer lower premiums if you drive fewer kilometres per month. If you work from home or have a second car, this could be an easy way to pay less.
4. Improve your car’s security
Invest in an immobiliser, tracking device, or rear sensors to lower your premium. Insurers love lower risk!
5. Choose an insurer that offers decreasing premiums
Did you know King Price is the only insurer in the world that offers monthly decreasing car insurance premiums? Your car loses value over time, so why pay increasing premiums? Makes sense, right?
What are the different types of car insurance in South Africa?
Not all insurance policies are created equal. Here’s a quick breakdown of your options:
1. Comprehensive insurance
The full royal treatment—covers accidents, theft, hijacking, fire, third-party damage, and more. Best for: Newer cars or those still financed.
2. Third-party, fire & theft insurance
Covers damage to other people’s property (third-party), plus theft and fire damage to your own car. Best for: Older cars that aren’t worth insuring comprehensively.
3. Third-party only insurance
Covers damage you cause to other people’s cars or property, but not your own car. Best for: Budget-conscious drivers with older, lower-value cars.
4. Theft & write-off insurance
Covers your car if it’s stolen or written off, but not if it’s repairable. Best for: Older cars at high risk of theft.
5. Agreed value insurance
Your car is insured for a set value that won’t depreciate for three years. Best for: Collectable or high-value cars.
Final thoughts
Car insurance in South Africa doesn’t have to break the bank. Whether you’re a first-time buyer, a seasoned driver, or just looking to cut costs, there’s a policy for you. Want decreasing premiums and royal service? Get in touch with King Price today and see how much you could save!
👉 WhatsApp us on 0860 50 50 50 or click here to get a quick, commitment-free quote!
