The vast majority of South Africans buy used cars simply because financing a new car is expensive. According to insurance comparison website Hippo.co.za, the calculation of which cars are the cheapest to insure necessarily has to be used cars because the new ones are priced out of the range of most people. Depending on how close to being new the car is will also mean a higher insurance premium, due to a higher replacement value.
Statistics have shown that there are over 10 million cars on South African roads and approximately about 35% of these vehicles are insured.
Factors used to calculate affordable car insurance:
The car is less than five years old
If the car is brand new chances are that you will be obligated by your finance institution or bank to get comprehensive insurance cover. If your car is used, but is less than five years old you may get to benefit from lower insurance premium charges, which can be reasonably affordable.
The car is easily available in South Africa
If your car is a reasonably affordable car you may be able to qualify for lower insurance as your car is likely to be a low-risk car.
The manufacturer of the car has a South African factory for access to parts and servicing
Insurance providers use a rating system to decide how much of a risk your car is. This will contribute to determining your insurance premium.
The vehicle is parked inside either a secure facility or inside a yard with a locked gate
If you make sure that your car is parked in a safe area during the day and you park it in your garage at night, this will help to deter theft, thus lowering your risk and potentially your premiums.
The most affordable cars to insure in South Africa (in 2014) according to Hippo.co.za:
- VW Golf
- 2009 Corsa Lite
- Toyota Tazz
- Toyota Yaris
- 2009 VW Polo