How much does car insurance cost per month?

How much does car insurance cost every month? Besides car instalments, maintenance costs, and fuel costs, the South African motorist has to also face monthly car insurance premiums. All the more reason for finding affordable car insurance to suit your budget.

Disclaimer

You are requested to consider this article as information only, because car insurance is not straightforward. However, if you are interested in a car insurance product, please contact a certified, financial advisor for professional advice.

What is the average motoring cost per month?

A 2017 article by Carmag refers to a financial institution which says that in 2017, the average total motoring cost for South Africans was increasing sharply, amounting to 24.2% since July 2013. This was 6.1% higher compared to the cost the previous year.

The importance of motorists budgeting carefully

With such increases occurring in total motoring costs, it is vital that motorists budget wisely. This is exemplified by the almost doubling in price of an entry level car costing R100 000 in 2007 and R183 000 ten years later.

Car instalments, maintenance costs and insurance premiums have risen the most

The credit provider mentioned that from 2013 to 2017, car instalments, maintenance costs and insurance premiums increased the most. This can largely be blamed on car price inflation. Instalments increased by a staggering 43.8% over this period due to higher interest rates and higher car prices.

Car insurance premiums have increased considerably

Car insurance premiums suffered from the knock-on effect of increased car prices, growing by 38.6% from 2012 – 2017.

Average vehicle costs in June 2017

In June 2017, new vehicles financed by a credit provider cost an average of R300 181, whereas used vehicles averaged at a cost of R202 796.

What about the average monthly fuel cost per motorist?

From 2016-2017, monthly fuel costs of motorists declined, despite the increase in costs of fuel, maintenance and instalments. In July 2017, fuel made up 31% of the monthly motoring budget. The cost of fuel is largely controlled by the Rand’s exchange rate and the international oil price. With the above challenging information serving as background, it makes sense that the motorists should buy the most affordable car insurance, while at the same time, not compromising on the quality of cover.

How do you find affordable car insurance that is still high quality?

There are several things motorists can do to find affordable car insurance which can still provide great cover.

Do your homework

Visit websites of well-known, reputable car insurance companies and find out what kind of cover they offer, and how much it costs. From that, you can work out exactly what kind of insurance you want and what you would like to see covered in your situation. Because of budget constraints, you may go for third party, fire and theft car insurance instead of comprehensive insurance.

Some companies offer lower premiums

Buying a new car with great safety and anti-theft facilities will lower its risk to some insurers, who may be prepared to offer lower premiums. Other insurers charge a higher premium when you live in high-crime areas, so moving to a safer area may help. The older you get, the better the premiums will look. Insurance companies may lower premiums, if you move other insurance policies to them as well. Arrange the right amount of excess with a company, if your insurance company charges an excess, not all insurance companies charge an excess. You’ll be able to enjoy lower premiums provided you can afford the high excess at claim time. Finally, you can also bargain with the insurance company if you have an excellent driving history or low-risk driver profile.

Expensive to run a car? All the more reason to buy affordable cover with Prime South Africa

Sources:

1. 1. Car Mag