Overview of Car Insurance in South Africa.

    December 19, 2018

    This article will attempt to provide an overview of car insurance, a variety of high-level aspects of insurance related to vehicles in South Africa.

    Vehicle Values – Overview of Car Insurance

    First, let’s examine the common language and meaning of the three values from a car world perspective.

    Market Value

    So usually calculated as a figure midway between a vehicle’s retail and trade values.

    However, this insurance cover is almost always insufficient for a similar car substitute.

    Retail Value

    This insurance cover includes the vehicle brand, classification, manufacturing date, odometer reading, whether it is new or second hand minus the client’s portion due upon finalisation of a claim.

    Overview of Car InsuranceTrade Value

    Car dealers will propose this value to people wishing to buy a new car from them. In exchange for their existing car on the condition that it is as part-capital for the purchase.

    Vehicle Usage – Overview of Car Insurance

    You must insure for the exact type of usage. Only you know to what extent you use your car for, is it business or strictly private or maybe a mix of both. You need to break down the percentage of use if it is a mix of both.


    The vehicle used by a specialist employee, for travelling between their workplace and another specialist work location.


    The vehicle used exclusively for personal purposes.


    • The vehicle used solely for business reasons.
    • Departing from the aforementioned is an alternative cover for vehicles being used for both private and business purposes.
    • Another addition is the vehicle for business travel outside of South Africa.


    NB! Incorrect usage cover may result in obstacles when claims are submitted.

    Car Insurance Cover

    Various options available are: Limited: Cover solely for vehicle theft or vehicle damage caused by fire, for both the client and another person’s car.

    Third Part Damage: Cover payable only to someone else for damages to their vehicle caused by the customer. Comprehensive: Cover for all sorts of vehicle damages including third party claims.

     Internet Quotes & Results

    Clients can requst car insurance quotes from an insurer’s website. On some sites you can compare quotes in one go!

    Certain factors will sway the final insurance cover and monthly premium, therefore, quotations should only be as estimates.

    Monthly Car Insurance Instalment

    Calculated as follows: % x Total insured value + additions – reductions = monthly car insurance payment

    Additions include:

    • Duration of a driver’s license,
    • Driver’s age,
    • Other allowable drivers especially younger drivers who are deemed, high-risk drivers,
    • Vehicle usage.


    Reductions are allocated to:

    • No-claims history,
    • Parking in a secure area while the client is working,
    • Car tracking devices,
    • The client living in a low-risk area,


    Smart Add-on Ideas

    Car insurance firms offer various additions such as:

    Emergency medical response: medical distresses and crisis;

    Roadside assistance: labour at the location, changing a flat tire, towing, fuel, locksmiths, winching and battery jump-start services;

    Scratches & Dents:  scratches, chips and dents and usually providing a guarantee as well;

    Tyres & Rims: punctured tyres, tyre blowout, road hazards damaged like potholes, road debris and pavements/kerbs, potholes and road debris.

    Car Insurance Policy

    Before signing the final plan, clients should check that the policy covers all their needs.

    Finally, upon receipt of the policy, customers must ensure that they understand and comply with its content so as to avoid possible claim challenges.

    Request a car insurance quote, please complete the form on this page and click on the “Get a Quote” button 

    All info was correct at time of publishing