Updated 23.02.2023

How to Get Quality, Budget-friendly Car Insurance in South Africa

There’s one detail common to all car accidents: they’re always unexpected.

In some countries, car insurance is mandatory. In South Africa, though, it’s not. In fact, many drivers here have a happy-go-lucky attitude towards car insurance: why pay precious pennies towards something that may never happen? We’ll cross that bridge when we get there.

Tragically, a bad accident that’s uninsured can totally destroy your financial future. You can find yourself owing millions in the blink of an eye.

If you’ve decided to start hunting for car insurance, congratulations: you’ve made a wise, financially sound choice. In this post, we’re going to give you some quick and effective tips on how to find excellent yet affordable insurance that will cover your back if something happens to your car.

The difference between types of policies… and how this affects your budget.

Third-party coverage only pays for damages sustained by the other person in a collision. It’s the cheapest type of insurance.

Third-party fire and theft policies are similar to third party policies, but they also pay out if your car is damaged due to crime, fire, lightning or explosion. It won’t cover your car in the event of a collision. It’s also more expensive than third party coverage.

Comprehensive insurance covers nearly everything: damage from accidents, crime and nature, damage done to all cars in a collision, plus the third party’s medical bills. It is the priciest insurance policy, however. It’s ideal for covering a new, expensive car that you’ll be using a lot.

These things can reduce your insurance premium.

  • If you have some money in your savings account, you can sacrifice a low “excess” in favour of a low “premium”. You’ll pay less each month, and your insurance provider will dish out less in the event of an accident – you cover any excess with your savings.
  • If you’re elderly, married, or have a record of driving safely, check if you’re eligible for a “lower risk” discount.
  • Some insurance providers offer a cashback system for drivers who use the road safely. Your car is tracked using an app on your phone, and you’ll need to stick to your insurance provider’s safety standards.
  • Consolidating your insurance by purchasing all your policies from a single provider will often get you a lower premium.
  • When shopping for a new car, keep in mind that different models and brands are more expensive to insure than others. A brand-new BMW sedan has a higher premium than a 2011 Nissan hatchback… and certain cars are hotter targets for criminals.
  • You can reduce your premium by upping your security. For example, you can install an alarm or a tracking system in your car.
  • Lower your mileage by walking and carpooling whenever you can, and going on road trips with friends or using a bus. A lower annual mileage means you get to pay less for your insurance.

Which insurance companies offer the best quality budget car insurance deals in South Africa?

Always purchase an insurance policy from a known and trusted insurer. Disreputable insurance companies use dishonest tactics to convince you to spend your money… and you end up not getting what you’ve paid for

Here are some reputable, highly popular South African car insurance providers that can give you a good deal on your car insurance.

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MoneyToday South Africa is a financial website aims to assist consumers with comprehensive information on personal finance, loans, insurance, investment opportunities, financial guides, tips and comparison of a large number of finance and insurance companies on the South African market.


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