Is there such a thing as affordable car insurance?

The reality about car insurance is that the richer you are the cheaper it is. Therefore, affluent members of South Africa’s society pay less than those who really need affordable car insurance and premium rates.

The reason for this is primarily what short-term insurance companies call “risk profiling.” So people who live in “safe” areas with lock-up garages and anti-theft devices are regarded as low-risk clients, compared with motorists driving economy cars and living in middle-to-low-income areas. Incredibly, they get affordable car insurance.

Significantly, this anomaly and annual increases in insurance premiums have led to an increasing number of insurance policy cancellations, adding to the growing number of uninsured vehicles on South African roads. Presently there are more than 65% uninsured vehicles on our roads. And yet affordable car insurance is available.

Affordable Car Insurance in South AfricaSignificantly, the war for a share of the ever-shrinking car insurance market has seen the emergence of affordable products by savvy South African companies. They have had to reassess their strategies and offer cash-strapped consumers cheaper insurance alternatives.

This is what motorists can now expect:

  • Affordable premiums
  • Fixed premiums rates
  • Monthly premiums that decrease in line with vehicle depreciation
  • No excess payments


Smart Insurance Means Affordable Car Insurance

Some of these street-smart insurance companies are even offering motorists half-price premiums. These cost half of what they would have had to pay for a comprehensive package.

Others are guaranteeing fixed premiums for life. And others are offering decreased monthly premiums as the value of the vehicle under insurance depreciates.

Some others have scrapped administration fees. And many companies are offering no excess payments even if the client has previously lodged a claim.

All of these incentives should induce more motorists back into the insurance-fold.

Importantly, finding one of these cost-effective packages is easy, albeit time-consuming. The money saved at the end of the day will be well worth the effort of researching products and packages on offer by South African insurance companies on the internet.

Registered Financial Service Provider

Firstly it is very important to use an insurance company that is a registered Financial Service Provider (FSP) with the Financial Services Board. Steer clear of insurers which are not FSP’s because they are most likely fly-by-night organisations that could disappear from the scene or fail to cover your insurance claims.

Secondly most reputable South African short-term insurers have their own dedicated websites, making it easy for the consumer to research products and pricing. The information they need to provide you with a quotation will include:

  • The age and model of the vehicle
  • The age of the driver of the vehicle
  • Place of residence


So based on this information, an insurance company can provide a quotation – it bases premiums on the age of the vehicle (some older models are cheaper to insure); the make of the vehicle (some brands are known for their expensive spare parts); the age of the driver (younger people are regarded high risk).

Finally, place of residence also forms a crucial part of the assessment.


So premiums are lower if the motorist lives in a low-crime area, has a lock-up garage and has security measures both on the property and in the vehicle.


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All info was correct at time of publishing December 9, 2017