Car Insurance Myths South Africans Still Believe

Car insurance in South Africa is often misunderstood. Between conversations at the office, advice from family, and stories passed down over time, many drivers are left with the wrong impression of how insurance really works. Unfortunately, believing these myths can leave you underinsured, paying too much, or stressed when it comes time to claim.

At Prime South Africa, we believe insurance should be clear, simple, and reassuring. That means tackling the myths that still confuse drivers and giving you the facts you need to make confident decisions. Here are the most common myths South Africans still believe — and the truth behind them.

Myth 1: “Third-Party Insurance Is Always Enough”

It’s easy to think that third-party cover — the most basic and affordable option — is always the smart choice. After all, it meets the minimum requirement and keeps monthly costs low.

The Truth:

Third-party insurance only covers the damage you cause to other people’s cars or property. If your own car is stolen, written off in a crash, or damaged by hail, you’ll carry the entire cost yourself. For older cars, you might think that third-party cover is sufficient. But if your car is financed, newer, or essential to your livelihood, comprehensive cover provides cover for your car, when you need it most.

Prime Perspective:

At Prime, we understand that not every driver needs full comprehensive cover — but every driver deserves protection and peace of mind. That’s why we created Prime Third Party Plus: smart, affordable insurance designed for everyday South Africans who want reliable cover without the high cost.

With Prime Third Party Plus, you’re protected if you accidentally damage another person’s car or property — and you’ll have towing and emergency assistance when you need it most. It’s built for drivers who want confidence on the road, knowing that even when life takes an unexpected turn, Prime is there to help.

Our approach is simple: cover what matters, simplify what doesn’t, and support you every step of the way. Prime Third Party Plus gives you meaningful protection that fits your lifestyle and your budget — so you can drive with certainty, not concern.

Myth 2: “My Insurance Automatically Covers Anyone Who Drives My Car”

Many South Africans believe that if a car is insured, anyone who drives it is covered. This assumption has caused plenty of frustration at claims stage.

Most insurers have specific rules about who can drive your car. Some only cover nominated drivers — the people listed on your policy — while others may include family members living in the same household.
If someone who isn’t listed as a nominated driver has an accident, your claim could be rejected or you might have to pay a higher excess.

Prime Perspective:
At Prime, we make sure there’s no confusion about who’s covered. Our nominated driver policy gives you clarity and control — you choose exactly who is authorised to drive your car, and we make sure their cover is clear and active.
Need to add a new driver? It’s quick and easy through our support team or the Prime Protect App.
Because we believe protection works best when it’s personal — covering the people you trust, in the car you value most.

Myth 3: “Colourful Cars Cost More to Insure”

This urban legend has been around for decades. The idea is that flashy colours like red or yellow signal “riskier drivers” who face higher premiums.

The Truth:

Insurers don’t use colour as a pricing factor. What matters is your car’s make, model, year, engine size, location, and driver profile. Whether your car is red, white, or metallic grey doesn’t change your premium. However an important factor to note is that some cars have more expensive paint than others, especially newer models, and some insurance companies will factor in the cost of paint repair after claim, this is why some vehicles may cost more to insure, depending on the paint type used.

Prime Perspective:

We price on facts, not myths. That’s part of our promise of fair, simple insurance.

Myth 4: “If I Don’t Drive Much, I Don’t Need Insurance”

Some South Africans, especially those working from home or using public transport, believe low mileage makes insurance unnecessary.

The Truth:

Even if your car spends most of its time parked, it’s still at risk. Theft, vandalism, fire, natural disasters, or damage from falling objects can happen while your car isn’t moving. Insurance protects against these risks, not just collisions.

Prime Perspective:

With flexible cover options, we make sure even occasional drivers can have certainty without overpaying.

Myth 5: “Cheaper Premiums Always Mean Better Value”

It’s tempting to shop for the lowest monthly premium. In tough economic times, it feels like the easiest way to save. But a low premium can hide expensive surprises later.

The Truth:

Cheaper isn’t always better. A policy with low premiums may have:

• Very high excess.
• Limited benefits.
• Exclusions that leave you exposed.

Value comes from balance — fair premiums, manageable excess, and meaningful benefits.

Prime Perspective:

Prime’s Fixed Premium Promise and Reducing Excess Benefits* are designed to give you both affordability now and long-term certainty.

Myth 6: “Claims Are Always a Hassle and Rarely Paid Out”

Insurance has an image problem. We’ve all heard stories of people whose claims took months or were rejected entirely. This feeds the belief that insurance is more of a fight than a safety net.

The Truth:

While insurers must carefully assess claims, reputable companies aim to pay out fairly and quickly when clients are properly covered. The key is understanding your cover and exclusions upfront and knowing your responsibilities, like disclosing accurate information.

Prime Perspective:

At Prime, we believe in compassion during stressful times. Our goal is to guide you through the claims process with clarity, so you feel supported when it matters most.

Conclusion

Car insurance doesn’t need to be intimidating or full of hidden traps. By letting go of outdated myths and focusing on the facts, South African drivers can choose cover that  protects them.

At Prime South Africa, we’re committed to clear communication, fair value, and real peace of mind. From comprehensive cover to benefits like reducing excess and fixed premiums, our mission is to simplify insurance so you can focus on what really matters — the journey ahead.

Disclaimer This article is for general informational purposes only and does not replace professional or financial advice. Insurance policies and benefits differ. Always read your policy wording carefully and consult a licensed advisor if needed. * Terms and Conditions apply.