How to lower your car insurance premiums in South Africa
Very few drivers enjoy paying for insurance every month, but they will be glad they did when it's needed. The monthly costs vary dramatically depending on various factors, and there should always be a way for you to decrease your monthly payment.
Related: Understanding car insurance in South Africa: Coverage & Costs
The vast majority of drivers on our roads must have insurance. These vehicles and individuals will likely seek ways to obtain cheaper premiums on the monthly insurance coverage they pay. We have scoured the forums to find out what average South African drivers are doing to reduce their premiums and how they save money monthly.
Car insurance comparison: Finding the best quotes in South Africa
Adjusting your policy and risk
Increase your voluntary excess:
The excess is the amount you pay out-of-pocket when you make a claim.
By choosing a higher voluntary excess, you assume more risk, and the insurer compensates for this by offering a lower monthly premium.
Crucial: Only choose an excess amount you can comfortably pay immediately if you need to claim.
Review your coverage type, especially for older cars
Comprehensive is the most expensive option, as it covers theft, fire, accident damage to your car, and damage to third parties.
If your car is older and paid off, you may consider switching to Third-Party Fire, Theft, or Third-Party Only coverage. This significantly lowers the premium but doesn't cover damage to your own car in an accident you cause.
Ensure your vehicle is insured for its current market value, as older cars depreciate. Over-insuring is a waste of money.
Bundle your policies
Insuring your car, home contents, and/or buildings with the same provider often qualifies you for a multi-policy discount.
Use a secure parking location.
Insurers consider where your car is parked overnight and during the day.
Parking in a locked garage, a secure complex, or a well-lit, secure area significantly reduces the risk of theft and can lead to lower premiums.
Install approved security devices.
Security measures like approved tracking devices, advanced car alarms, and immobilisers can make your car less appealing to criminals, reducing your risk and premium.
Consider usage-based insurance, such as Telematics.
- Some insurers offer policies that track your driving habits. If you drive very little or are a safe driver, you may be eligible for a discount or even cash back for driving less or more efficiently.
Improving your driving profile
Maintain a clean driving and claims record.
A history free of traffic fines, accidents, and frequent claims makes you a low-risk client, which is rewarded with better rates.
Avoid claiming for minor incidents; pay for small repairs to keep your claims history clear.
Take an advanced driving course.
Completing an accredited advanced or defensive driving course can sometimes qualify you for a discount, as it proves a commitment to safer driving.
Smart shopping
Shop around and compare quotes regularly.
Insurance prices can vary significantly between companies for the same level of coverage. Use comparison websites or obtain quotes from multiple insurers (at least three) annually.
Don't just accept the renewal quote from your current provider without comparing it to the market.
Be honest and update your details.
Ensure all information is accurate, including your address, parking location, and typical mileage. Changes such as getting married, moving to a safer area, or reducing your driving for work can all lead to a premium reduction.
Choose a car model with lower insurance costs.
When buying a car, remember that models that are cheaper to repair, less prone to theft, and have good safety ratings generally have lower insurance premiums. High-performance or luxury cars are usually more expensive to insure.
