How much does car insurance cost?

Did you know that it costs an average South African 39.41% more per month in 2022 to keep a car on the road than it did 5 years ago? To put it in simpler and more terrifying terms, the monthly rand and cents it cost you to buy a car came to R6,711.24 in 2017. This year, it will cost you around R9,356.80, which includes the cost of car financing, premiums, fuel, operating costs and of course car insurance.

Understandably, with costs rising, rising, rising, we’re all looking for ways to keep our expenses down. First, we’ll break down how insurance premiums are calculated and then give you the best ways to keep your insurance costs down.

Average car insurance cost in 2022

We’ve got the detailed operating costs for a specific type of car (unnamed) to give you a good idea of ​​what you can expect to pay for car insurance on a monthly basis in 2022.

What we found out is that the average monthly insurance cost comes out to R1,322.13 which is pretty easy to figure out… kind of. In fact, this amount doesn’t really help you without knowing what type of vehicle is being covered, what type of insurance policy was chosen, and who the policyholder is. Oh, and who is insured.

Here are 3 specific examples from our records:

  • A 49-year-old woman paid a ridiculously low amount of R385 per month (with an excess of R4500), for a 2019 Hyundai Atos 1.1 Motion.
  • A 40 year old man paid a very reasonable amount of R530 per month (with R4500 excess), for his 2019 Suzuki Swift 1.2 GA.
  • A 34-year-old woman paid a small sum of R421 per month (with an overage of R2,500), for a 2021 Renault Kwid 1.0 Climber.

How is your premium calculated?

Let’s talk a little bit about why details matter when it comes to calculating the premium you’ll pay for coverage.

As you can see, insurers in South Africa, including us, take a lot of factors into consideration when creating your policy. Some of this information is obvious, like the make, value, and model of the car itself. You might also assume that we would need to know where you parked your car each night, because that speaks to the kind of risks we need to account for when covering your car.

But there are other factors we depend on, including:

  • The level of coverage you choose: Some policies are more expensive than others, with comprehensive car insurance being the most expensive and then only the third party being the cheapest.
  • What you do for a living: If your job involves a lot of driving, you are likely to be paid more than someone who spends less time on the road, because the risk of getting into an accident or other type of accident is higher.
  • How much you drive: The more you drive, the more likely you are to get into an accident, which is why we make a point where you estimate your distance on a monthly basis.
  • Your age and how long you’ve been driving: We take into account your age and experience, because neither factor paints a complete picture of your risk profile. For example, insuring a respectable 38-year-old who has only had a driver’s license for 2 years may be riskier than insuring a younger but more experienced 25-year-old with a driver’s license for 6 years.
  • Improvements made to your vehicle: You must inform us of any changes as they may affect your insurance premium. Never fear, though, not all mods lead to higher premiums! For example, if you outfit your car with an immobilizer, tracker, or rear parking sensors, you may end up saving.

The key to keeping your premiums lower

There are some surefire ways to keep your car insurance premium low:

  • If you insure more than 2 cars with us, you will get 20% off your premium. You can also increase your savings by insuring your buildings and the contents of your home with us.
  • Excess excess can reduce your car insurance premium. As you can see, there is a seesaw effect at play in considering the relationship between your premium and your excess. The higher your excess, the lower your premium and vice versa. However, such a decision should not be taken lightly. A higher excess means that you will have to pay a higher one-time amount when you claim from your insurance company.
  • And of course, one of the best ways to reduce your premium is to reduce your risks/risks. Where you used to park on the sidewalk, it would be great if you could find a safe place to park your car behind a locked gate or in a garage. Tell us about such promotions, so that your premium can be reduced.

If you’re in the market for simple cheap car insurance, just WhatsApp us on 0860 50 50 50 to find out more about our products or click here for a quick, obligation-free quote.

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