Are second-hand vehicles cheaper to insure?

    Are second hand vehicles cheaper to insure?

    • Used vehicles are cheaper to insure
    • Insurance payments depend on driver history
    • Availability of replacement and spare parts play a major role
    • Insurers favour popular economy cars
    • Shop around before selecting an insurance provider

     

    The majority of South Africans opt for buying second hand vehicles because of the expense of financing a new vehicle.

    Also, pre-owned vehicles are generally a better investment because the value of a new car depreciates by about 25% the Second Hand Vehiclesmoment it is driven off the showroom floor.

    When it comes to insurance, you must take into account several factors when pegging monthly premiums. These include:

    • Driver history
    • How and where the vehicle will be used
    • The level of insurance needed – such as comprehensive or third party, fire and theft
    • The make and model of the vehicle

     

    What are the cheapest second hand vehicles to insure?

    Insurance companies favour economy vehicles that have cheaper replacement parts readily available.

    These second hand cars include the Toyota Yaris, Corolla, Auris and Tazz; the Volkswagen Polo Vivo Hatch, the Opel Corsa and Corsa Lite; the Hyundai 110, and the Ford Figo and Focus.

    Other budget-friendly vehicles are the Honda Brio and Jazz, the Nissan Almera and Kia Rio hatch.

    How do insurance companies pin premiums?

    Used cars are far cheaper to insure because new cars will be far more expensive to repair or replace. In other words, the newer the car the more expensive it will be to insure.

    To determine premiums, insurance companies take the following criteria into consideration:

    • The age of the vehicle
    • The popularity of the vehicle in South Africa
    • Whether or not the vehicle is locally manufactured making it easy to source spare parts and servicing
    • For what period of time the regular driver has held a car license
    • The overnight parking security for the vehicle

     

    Where to source insurance quotes?

    Consumers are always urged to do their homework before selecting an insurance company.

    There are many internet-based companies, such as AutoTrader and Hippo that offer free insurance quotes from a variety of South African insurance providers.

    Simply visit these sites, fill in the required information, and they will get back to you with packages to suit your personal needs.

    If you prefer speaking to an insurance advisor, enter your email address and phone number and a representative from the company will contact you directly.

    How much can I expect to pay for comprehensive insurance?

    Based on the driver’s age and the make and model of the vehicle, consumers can expect to pay monthly premiums of about:

    • R200 for a 2006 Toyota Tazz with an excess of about R7 000
    • R360 for a 2009 Corsa Lite with an excess of about R7 000
    • R400 for a 2009 VW Golf with an excess of R5 500
    • R400 for a 2009 Toyota Yaris with an excess of R5 500
    • R450 for a 2009 VW Polo with an excess of R5 500

     

    Get your car insurance quote now. Complete and submit the form on this page.