Discover the Most Affordable Car Insurance in South Africa & What Makes It Cheap

Cheap car insurance isn’t as straightforward as one insurance company being less expensive than another. Several factors contribute to determining the price of each person’s car insurance quotes. Such as the type of plan you take out, the type of car you drive, your driving history and with some companies, even the amount you drive your car in a month.

These quotes will vary for each person – depending on their financial situation and unique circumstances. Keep reading to discover how you can ensure the cheapest possible car insurance for you and your vehicle’s needs.

Best Insurance Companies for Car Insurance Quote

Carinfo.co.za conducted an analysis on insurance companies, big and small, to determine the top players in South Africa in 2015. These companies were ranked based on complaints in the top 5 categories on hellopeter.com. These categories included; billing/accounts, repairs/servicing, feedback/response, breach of contract, and call centre. This allows consumers to choose the best company with the least amount of hassle. By choosing a reputable Insurance company, you guarantee yourself the value for your money spent on car insurance

The companies were ranked based on complaints. The companies with the least complaints were, therefore, the top-ranked. The big company category ranked first, second, and third as;

  • Discovery
  • Outsurance
  • MiWay

And the smaller business ranking;

  • AA Insurance
  • Momentum
  • Alexander Forbes
  • Mutual & Federal

red audi car

Affordable Car Insurance: What Makes Car Insurance Cheaper

So what is the best car insurance in South Africa? For some, this means the most coverage for the best price, while for others, it means saving money on basic coverage for their vehicle.

You might expect third-party insurance to be the cheapest as it offers the least amount of coverage out of all the different types of insurance. But this isn’t always the case. Sometimes drivers can end up paying more money for less protection, depending on the car you insure, your demographics, and who you are insured with.

Getting a cheap insurance rate is dependent on various factors, one of which includes claim history. Claim history is a report of all your previous made claims, big or small. The more you claim from your insurance, the more of a liability you are seen as by the insurance company. Therefore the higher your monthly rates will go. So to keep your rates down, try not to claim for small damages. Such as a tiny scratch on your door or a damaged side mirror. These claims will only increase your insurance on a month-to-month basis. Claim rather for big events such as write-offs or serious accidents where a lot of damage is done and compensation is sorely needed.

Cheapest Types of Car Insurance:

The type of car insurance plan and coverage you opt for will influence the price of your quote. There are three main types of coverage, listed from cheapest to most expensive according to the monthly cost.

1.   Third-party Insurance:

This is the most basic and affordable car insurance available. It covers the damages of another vehicle if you cause an accident.

The cost of this insurance differs from company to company but generally, it’s the bottom of the range coverage option for all insurance companies. This type of insurance usually covers the cost of repairs to the vehicle minus the excess. However, if there is damage done to your car at your fault, the insurance won’t cover these expenses.

Covers:

  • Damages to another vehicle caused by you in the case of an accident

Doesn’t Cover:

  • Damages to your vehicle caused by you
  • Theft of vehicle
  • Fire damage to the vehicle
  • Medical expenses due to an accident

girl-in-car-sun-behind

2. Third-party Fire & Theft:

This basic type of automobile insurance provides coverage for accidental damages caused to another person’s vehicle. It also accounts for the theft, hijacking, or damage due to fire for your own vehicle.

In other words, it also covers damages to your car that weren’t your fault. This insurance is normally more expensive than third party insurance, but cheaper than fully comprehensive coverage.

You will be responsible for the damages you cause to your vehicle in the case of an accident. So, taking out a fully comprehensive coverage might work out cheaper if you have an accident. Because you won’t need to pay for the repairs.

Covers:

  • Damages to another vehicle caused by you in the case of an accident
  • Theft of vehicle
  • Fire damage to the vehicle

Doesn’t Cover:

  • Damages to your vehicle caused by you
  • Medical expenses due to the accident

dark driving at night

3. Fully Comprehensive Cover

This is the most extensive type of coverage available for vehicles. Comprehensive covers just about everything including theft and fire damage as well as third-party vehicle coverage.

Additionally, you’re also covered in cases where you’re at fault for damaging your own vehicle. In the case of your car being written-off, this coverage will pay you the value of your car.

It gives you added financial protection and takes away the stress of having to pay for car repairs. This is particularly helpful when you’ve caused the damage or if the fault cannot be placed.

Benefits can be added to your package. Such as courtesy car (a borrowed car when yours is in for repairs) and breakdown cover (coverage for tow trucks or flatbeds).

Covers:

  • Damages to another vehicle caused by you in the case of an accident
  • Theft of vehicle
  • Fire damage to the vehicle
  • Damages to your vehicle caused by you

Doesn’t Cover:

  • Medical expenses due to the accident

When Car Insurance Isn’t as Cheap as it Seems

The plan you opt for, determine the coverage available to you. The lower plans, such as third-party insurance, cost less. But when in an incident, you might be paying out a lot more than if you had a higher coverage plan such as the fully comprehensive plan.

The lower the plan, the more extra costs, such as excess payments, medical bills, and gap payments. So monthly, your premium will be cheaper when opting to go with third-party insurance. But when having to pay for accident induced costs, the total amount in the long-term may be more expensive.

Types of insurance plans don’t have set rates, they vary depending on the company you are insured with and other personal factors that determine the risk you pose to the insurance company.

car yellow beetle

What Makes Your Insurance More Expensive?

The type of car you want to insure will greatly influence the price of your monthly insurance premiums. The more expensive and unique the car, the more expensive the parts and repairs for the vehicle will be.

Best Cars to Ensure Affordable Car Insurance Premiums

We know how important car insurance is to have. But we are also aware of the price tag that accompanies it. To make your automobile insurance more affordable, you can consider these types of well-trusted and budget-friendly cars.

These are also the best student cars in South Africa that ensure cheap car insurance. After all, we’ve all heard of the famous student budget.

  • Volkswagen Polo
  • Hyundai i10
  • Volkswagen Up
  • Skoda Citigo
  • SEAT MII
  • Ford Fiesta
  • SEAT Ibiza
  • Renault Clio
  • Skoda Fabia
  • Citroen C1

Choosing the right car can be intimidating. After debating which car allows for the most affordable rates, the next question is: Where to get online car insurance quotes and compare them all in one place?

Compare ‘n Review lets you find car insurance, compare multiple different insurance companies, and quotes online in minutes. Consider them your car insurance calculator. Helping you find the most affordable car insurance for your needs, all from the comfort of your home.

red car on road at night

Factors that Influence Insurance Premium Rates

Car Insurance quotes vary for a number of different reasons, including your gender, location, age, and many more. It is essential to familiarize yourself with these factors to better understand why you quote in its amount.

  • Location: Densely populated areas are classified as a higher risk for accidents. Therefore your area code will play a part in the affordability of your premium.
  • Gender: Male drivers are seen as riskier and accident-prone. Resulting in a higher insurance rate if you are a male.
  • Marital Status: Married couples are seen as less frequent drivers and safer than those who are single. So being married will decrease your car insurance quote.
  • Age: Insurance companies see younger drivers as a higher risk. Those over the age of 25 will experience lower insurance premiums.
  • Driving History: Speeding fines, parking tickets, prior accidents, and how long you have been driving will affect the affordability of your insurance rate as these classify how risky you are to insure.
  • Credit History: Lower credit scores will result in a higher premium, as you are considered less trustworthy than another with a better credit history.
  • Claims History: A full record of big claims will make your premium and excess more expensive.

It is vital to be aware of all the factors that increase car insurance rates. Understanding these will help you know why your quote is the amount it is.

white mini on desert road

Closing Thoughts on the Cheapest Car Insurance In South Africa.

A cheap Car insurance quote isn’t a simple answer—various factors play a role in deciding your car insurance premium. From your age and location to the car you want to insure, and even which insurance coverage plan you want to go for. A better plan gives you more value for money in the long-term, while the entrance package is cheaper monthly but can have a hefty cost when you claim from your insurance.

Finding a cheap car insurance quote isn’t easy when there are so many factors weighing against you. By comparing your options online, this process doesn’t seem so daunting anymore. In just 5 minutes, you have all you need to discover your optimal and most affordable car insurance.

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1 Comment
  1. Reply
    Bongani collins Hlatshwayo January 5, 2021 at 6:52 am

    i have new 2020 ertiga Suzuki 1.5 glx ,silver ,manual

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