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Car insurance products to suit every budget

Our car insurance range offers you affordable benefits that can be customised to your needs.

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Comprehensive Cover


Comprehensive car insurance for your car with excess that reduces to zero and fixed premiums.*
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Comprehensive cover includes:

  • Write-off and accident cover
  • Natural fire and disaster
  • Theft and hijacking
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Third-party vehicle liability protection:

Up to R1 million per incident
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Cover for your car:

Up to 100% of its retail value
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R10,000 Free Accidental Death Cover

Assists your family financially if you die in an accident.
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24-hour roadside assistance and towing
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Hail damage cover
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Glass cover*
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Covers vehicles up to 15 years of age
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Customised Cover


Customised car insurance that protects you in the event of a write-off with excess that reduces to zero and fixed premiums.*
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Total loss cover for:

  • Accidental write-off
  • Natural fire and disaster
  • Theft and hijacking
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Growing Cover:

That contributes toward the cost of repairs in the case of an accident
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Third-party vehicle liability protection:

Up to R500,000 per incident
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Cover for your car:

Up to 100% of its market value
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24-hour roadside assistance and towing
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Covers vehicles up to 15 years of age
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Third-Party PLUS


Our Third-party PLUS plans include a growing cover benefit that also protects your car in the event of an accident.
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Growing Cover:

That contributes toward the cost of repairs or loss in the case of an accident
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Third-party vehicle liability protection:

Up to R500,000 per incident
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Cover for your car:

Up to 100% of its trade value
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Covers vehicles of any age
*All Comprehensive policies are subject to a 6 month Additional Early Claims Excess and a basic reduce to zero excess

Get a car insurance quote in under 10 minutes

Car insurance is a must before you get behind the wheel. We've made it easy to quote and buy online.

We've made it easy to get a quote online
  • Get a quick, accurate, and personalised quote
  • Enjoy affordable, Fixed Premiums*
  • Reduce to Zero excess*
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Can Car Insurance Calculators Find Cheap Car Insurance Quotes?

We all want to find the best deal on car insurance. It should be cheap and cover everything that we need car insurance to cover too. Car insurance calculators are often used. In the old days, a car insurance calculator used a small number of elementary parameters. However, today, companies have advanced greatly in calculating car insurance, using complex parameters. Read on and find out what influences your premium.

Disclaimer

Because car insurance is complicated, we advise readers to consider this article as only information. If you are interested in purchasing car insurance, please consult a certified, financial advisor for professional advice.

What value do car insurance companies give your car?

Insurers mostly provide cover based on the car’s ‘market value’.1 The market value is the average of the trade-in value, which is the lowest, and the retail price, which is the highest.

What is meant by trade-in and retail prices?

A trade-in price is what a dealership offers to take off the purchase price of a new car when you trade in your old car. The price is set by the dealership. A retail price of your car is the average price that a dealer will sell your car for. Insurers provide a discount if you insure your car for its market value.1

The make and model of your car affects the premium

It’s a no-brainer that the value of the make and model of your car will greatly influence the premium. A premium to insure an expensive, luxury SUV will be a lot more than one used for insuring a small city car. Some cars are expensive to maintain, due to expensive spare parts.1 Other cars are more sought-after by thieves and hijackers. The insurer bases premiums on data from claim histories of all the various makes and models.

What about the age of your car?

Usually, the older your car, the less its market value, and the lower will be the premium.1

Cover for sports cars is expensive

Insurance is all about risk. The higher the risk to insure a particular car, the higher the premium. Fast sports cars with young drivers are at greater risk of having an accident compared to an adult driving a standard sedan. Thus, premiums for the former car are considerably higher.1 Conversely, if the risk is decreased by adding safety features to a car, the premium could be lowered. 

Your choice of car insurance type affects your premium

Should you choose to cover your car with comprehensive car insurance, the premium will rise steeply. The reason for this is that your car is covered ‘comprehensively’ or completely, and hence the higher premiums. Third party car insurance provides limited cover and thus has a lower premium.1

Consolidating your policies with one insurer

Some insurance companies discount your premiums if you have other policies, such as life insurance, with them as well.1

Your driver profile is most important to the insurer

You can do nothing about calculations based on the following parameters because they represent who you are.1

Why is your age important?

Again, it always comes down to risk. Young drivers, especially those below 21, are considerably less experienced and thus pose a greater risk on the roads compared to adults who have had many years of driving experience. Thus, young drivers have to pay a higher premium compared to older drivers. Be honest and fully inform the insurer who is the regular driver, to avoid possible rejection of a claim at a later stage.1

Young male drivers post a greater risk than their female counterparts

Statistics show that young male drivers under the age of 25 are at greater risk and are thus charged higher premiums compared to corresponding female drivers.1

A good education helps

Drivers who are professionals in science, medicine, engineering, and so on, statistically pose a low risk. As a result, insurers offer them discounted premiums.1

Are you single or married?

Insurers have found that, statistically, married drivers are less risky compared to single drivers, and thus are offered discounts.1

Your driving and claim profile

Drivers that have hardly claimed anything over several years are considered low risk and thus qualify for lower premiums, and no-claim bonuses. Drivers who start off with no driving history are initially charged higher premiums.1

Where do you live and work?

Some insurance companies raise premiums if policyholders live and work in risky and maybe dangerous areas.1

Making your car more secure helps

By adding security features to your car such as anti-hijack and tracking systems will reduce risk and premiums.1

Are you using your car for business purposes?

Using your car most of the time for business means you travel more and are thus exposed to greater risk. This means the premium will go up.1

What is your excess?

The higher the excess, the lower the premiums are likely to be.1,2

Your credit record matters

Insurers prefer offering lower premiums to those drivers who are responsible with their finances.1

Other benefits that are part of the policy

Benefits such as 24/7 roadside assistance may be part of your premium. You can lower your premium by canceling them but think carefully before you do so.

Have you considered covering your car with PMD’s cheap car insurance?

Now that you have read all about what affects car insurance premiums, make sure your car is adequately covered by buying cheap car insurance products with PMD (Prime Meridian Direct). It’s easy and quick – just go online with PMD’s Online Insurance Purchase Platform. You can do this at any time of the night or day, and make use of a call-back facility if you want to. Audio and video material are provided for extra assistance.

How do South Africans feel about Buying Car Insurance Online?

Online shopping continues to grow in popularity in South Africa. An ‘Online Retail in South Africa’ research study was carried out by World Wide Worx, which revealed that there was a 25% year-on-year growth in online shopping in 2018. 

Online shopping is convenient 

Is it the same for car insurance? Do people like buying car insurance online too? Buying car insurance online can save you time and you can buy it at any time which means you don’t have to squeeze it in during office hours. You could research a wide range of insurers online and make your choice when you’re happy, all without making or taking a single call.

The key to online shopping success for companies is to make it as easy as possible for customers. Some may argue that it is easier to buy something over the phone compared to filling out pages of information online. Nevertheless, some insurers have made it as easy and logical a process as possible. The latest IT technology allows website owners to constantly improve their online buying processes by studying how consumers behave on their websites.

Car insurance companies embrace online shopping trend

Most leading insurers have embraced the online shopping trend and promote and sell car insurance online now.

It is true that insurers are catering for the part of the population that is digitally savvy. However, some South Africans still prefer to make purchases the traditional way, whether it is instore or via a telesales person.

A shift in consumer buyer behaviour

More individuals’ perceptions about shopping online will change over time as the online shopping trend further matures. For example, many people didn’t’ trust online banking in the past but now, in 2019, banks are closing branches because people’s online banking habits reducing the need for them.

This trend is also evident in the online self-service sector. For example, MultiChoice, the owner of DStv, announced that they would restructure their workforce based on changing consumer behaviour, as more people interacted with the company online than in the past. 

Online shopping security

It is fascinating to see this growth in online shopping. According to a recent research study by the University of South Africa, many respondents were concerned about the security of their financial data when participating in shopping. Overall, they were more concerned about their online transactions’ security compared to face-to-face transactions. 

Consumer buyer behaviour is intriguing because of financial crime occurring face-to-face too, whether it is card skimming during a transaction at a point-of-sale in a store, or someone being robbed at an ATM. 

Either way, banks, in many cases, usually refund people who have been victims of financial crime. Every bank has its own terms and conditions. Therefore, we recommend that you confirm what and when your bank covers you in terms of fraud.

Like online retail stores, car insurance company websites make use of effective security measures which protect consumer information Not only is it in the insurers’ best interests, but it is also required by law (see for example the conditions contained in the POPI Act). 

South African companies have, and continue to, invest in online security. PwC revealed, from its research, that SA companies actively combat economic-related crimes and 44% of all South African companies increased their expenditure on fighting fraud since 2016. 

Online shopping security tips

When it comes to buying anything online, follow the standard safety precautions. Make sure it is a legitimate website from an insurer before you share your financial information.

  • Look out for the “padlock” in your internet browser, which symbolises that the website is secure.
  • Make sure it is a well-known brand – have you heard of them before? Is the insurer a registered Financial Service Provider?
  • If in doubt, contact your bank’s fraud division. They have a wealth of knowledge on the matter, and they will gladly help you.
  • Don’t do online shopping in a public space where passers-by can see what you are doing.
  • Don’t connect to a WiFi Internet network that you don’t know and/or is available to the general public. Fraudsters could access your computer this way.

Disclaimer

Buying car insurance isn’t the same as buying socks online. So, we recommend that you seek qualified financial advice before you buy car insurance regardless of how you decide to buy car insurance. Always read the terms and conditions and spend your time comparing every facet of insurers’ products before you make your final choice.

Get affordable car insurance online with PMD

Buying products online is convenient and generally secure. Online stores and insurers usually make every effort to provide excellent customer care too.

Are you looking for affordable car insurance? Why not get an online quote or buy car insurance online with PMD?