Why is car insurance so expensive in South Africa?
Only 35% of cars on South African roads are insured. Of the more than 10 million cars on the roads in this country, only a fraction of these are insured
Car insurance is not yet compulsory in South Africa. . Government is however taking steps to introduce mandatory car insurance.
Factors that may affect car insurance premiums include the depreciating rand. What it means when the rand loses value is that it costs car insurance companies much more to be able to repair cars. In addition, the price of imported vehicle parts has sky-rocketed. Insurance companies are then forced to transfer some of these costs onto customers as a result.
The poor state of South Africa’s roads has further aggravated the car insurance crisis.
How to get the most from cheap car insurance companies:
- Pick one of the cheapest cars to insure. By driving a cheaper car model, you may be able to save significantly on car insurance costs.
- Steer clear of car modifications. By modifying your car, you face the risk of being regarded as a high-risk client.
- Go for an advanced driving course
- Pay per year, as opposed to per month
- Consider increasing your excess
- Think about the level of cover that you need
How to identify cheap car insurance companies:
- Financial stability of the insurer. The company should be able to afford to pay-out should the need arise.
- You need confirmation that the car insurer is operating a legitimate business
- The insurance company must be registered with the Financial Services Board
- The size of the company does reflect on experience and reputation
- The best cheap car insurance companies will be competitive and reasonable in providing value at reasonable rates
- The best car insurance companies should be particularly strong in a specific field of expertise