Get cheap car insurance plans in South Africa in 2024

How to get cheap, reliable car insurance in South Africa in 2024

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South Africa is a beautiful country with friendly people to call neighbours and friends. Nevertheless, times are tough at the moment for many South African motorists. For example, the price of fuel has reached new heights and living costs are increasing as well. The COVID-19 pandemic has wreaked havoc on many South African livelihoods. Many motorists have cancelled their comprehensive car insurance policies to pay for other important needs. There are other cheap, reliable car insurance alternatives in South Africa in 2024 that motorists should be aware of.¹

Do you want to know more about how rising living costs are placing pressure on the affordability of car insurance? Let’s examine some trends below.

What are the rising costs?²

Household debt levels¹

Despite their decline, household debt levels remain very high. About 75% of the average household income goes to servicing debt. To add to this negative scenario, only about 35% of all vehicles on South African roads are insured.

Is car insurance legally required in South Africa?¹

Unfortunately, car insurance is not a legal requirement in South Africa. Other countries like Norway, Indonesia, the US, and the UK legally require motorists to have comprehensive car insurance, while other countries enforce a minimum car insurance requirement of third-party car insurance.

What about cars financed by financial institutions?¹

The South African law demands that cars purchased via financial institutions such as banks must have comprehensive car insurance.

Cancelling a comprehensive car insurance policy has huge repercussions for any motorist. Instead of cancelling, the motorist can consider the following advice to reduce their car insurance premiums:

Disclaimer

This article should only be considered for information purposes only as car insurance is not straightforward. Please obtain professional advice from a certified financial advisor if you want to purchase car insurance.

What is a cheap car insurance quote in 2021?

So far, 2021 is a year of New Year celebrations and the challenges that relate to COVID-19 pandemic. What has that got to do with cheap car insurance quotes you may ask? It has impacted many South African consumers’ wallets. So now, more than ever, motorists need to find ways to save money, which usually starts with their monthly expenses. Getting affordable car insurance quotes to find the best car insurance deal is a way to reduce one monthly expense potentially. Please remember to consult with an expert, certified financial advisor before you buy car insurance products. A certified financial adviser has the relevant technical know-how and authority to provide you with the best advise. This articles is for informational purposes only and does not serve as financial advice.

Disclaimer

Please seek the advice of a certified financial advisor before you decide to purchase car insurance. This article should not be viewed as financial advice.

Let’s investigate what exactly a cheap car insurance quote is and some other related insights. Whether you already have car insurance or not, car insurance quotes from reputable insurers can help you find the best deal.

What is exactly is a car insurance quote?

A car insurance quote is a cost estimate or a formal offer for the purchase of car insurance from an insurance company regarding the approximate cost of your potential monthly car insurance premiums from that company based on the information that you provided them. You can accept a quote and sign up for an insurer’s car insurance product if you are happy with the quote.

Car insurance quotes are calculated based on many factors, which is collected by your input when you request your quotes. Factors such as your age, car make, and car model may affect the final price listed in your car insurance quotes. It is best to give every insurer the same information so that you get comparable quotes on which to base your final choice.

How could you get car insurance quotes in South Africa?

Car insurance quotes can be gathered online directly from insurers’ websites or via car insurance compare ‘quote aggregator’ websites, which collect quotes from multiple insurers for you. Other ways could include getting a car insurance quotes are via an insurance broker and over the phone by talking or emailing the previously mentioned companies or individuals.

How many quotes should you get?

Your financial advisor would be the best person to answer this question. However, The Balance company believes that up to 5 quotes are the way to go.

How often should you get car insurance quotes?

Be in regular communication with your financial advisor to re-asses your monthly expenses when you feel that you need to find ways to save money responsibly. This could also depend on your relationship with your current car insurance company. Does your current insurer offer an excellent service? Perhaps contact them to renegotiate your monthly premium before you potentially decide to change your insurance to a company who could provide you with a cheaper monthly premium but poor service.

Perhaps consider getting car insurance quotes every 2 or 3 years, according to The Balance company. Requesting car insurance quotes is one way to make sure that your current car insurance premiums are competitive.

Please take your time to read all of the relevant fine print before you make your final decision about your car insurance.

Are you potentially looking for affordable car insurance? Affordable car insurance is on offer with Prime, which includes unique benefits like fixed premiums* if you don’t claim and a reduce-to-zero excess*. *T’s and C’s apply.

Do you have car insurance? Learn more about cheap car insurance quotes for South Africans in 2021

South African motorists often ask, “Which insurer will give me the cheapest car insurance quote in South Africa?” Perhaps car owners may ask a friend, “How much does car insurance cost per month?” These questions are especially relevant in 2021. Another popular question SA drivers could ask is, “Which insurance company is the best for car insurance?” Other motorists may also wonder, “how do I compare car insurance quotes online?” We explore potential answers to these questions and other topics in this in-depth article. We also share information about buying affordable car insurance products with Prime. Please note: The contents of this article should not be seen as financial advice, but only for illustrative informational purposes only, please. Please seek advice from a certified financial adviser before you buy car insurance.

We all appreciate affordable or cheap car insurance. No one wants expensive car insurance in South Africa. Affordable, inexpensive or cheap car insurance. Whatever you call it, this type of vehicle cover is available in South Africa, and “cheap” doesn’t have to mean “poor quality” when it comes to reputable insurers. Are you looking for the best cheap or affordable car insurance quotes? Learn more information about car insurance from multiple sources. This news article’s information is sourced from independent (non-affiliated) news sources and other top-independent (non-affiliated) industry authorities. Find out more about buying car insurance with Prime as well. Discover more about the “what”, “why”, “how” and “when” of car insurance.

Disclaimer: Please remember to get financial advice from a qualified financial adviser before you buy any car insurance cover. This article provides in-depth information spanning from 2017 to 2020 about car insurance-related topics and Prime product information.

Explore more about cheap car insurance from a South African insurer. We are all looking for the best car insurance quote and deal that suits our wallets and our needs. Now more than ever in 2020. The petrol price and general living expenses keep going up. The global health crisis has impacted us all in some way. Nevertheless, there is always a solution and a positive outcome if we put effort into finding the right deal from the best insurance company. Referring to a “best insurance company” is highly subjective, we refer to an insurer that best serves your needs and financial wellbeing.

Explore more about cheap car insurance from a South African insurer. We are all looking for the best car insurance quote and deal that suits our wallets and our needs. Now more than ever in 2020. The petrol price and general living expenses keep going up. The global health crisis has impacted us all in some way. Nevertheless, there is always a solution and a positive outcome if we put effort into finding the right deal from the best insurance company. Referring to a “best insurance company” is highly subjective, we refer to an insurer that best serves your needs and financial wellbeing.

So, we go about comparing quotes and doing research to find the best deal. Do you own a car, SUV, hatch, sedan, bakkie or crossover and live in South Africa? Find out more about what is “comprehensive insurance”, “third party insurance”, “car insurance”, “vehicle cover”, or whatever you want to call it. Also, learn more about why all South African motorists need some affordable, reliable and trustworthy motor vehicle insurance in 2020.

So, are you looking for a cheap car insurance quote? You can get an online quote in 4 minutes for car insurance that starts from R167*pm (*T’s and C’s apply). Let’s explore some important concepts and questions before we dive into how to get inexpensive vehicle cover quotes. Do South Africans need affordable vehicle cover? We believe the answer is “yes.” Every South African should be able to buy car insurance via browsing a selection of cheap car insurance quotes for comprehensive plans, third-party, and other types of plans.

South African motorists need innovative, tailored car insurance products that are affordable and cost-effective. However, you describe it, car insurance such as this could help millions of South African motorists. The South African Rand has depreciated by more than 60% in the last three to four years. Consequently, the price of imported vehicle parts has skyrocketed, steeply pushing up the cost of vehicle repairs and the average car insurance claim amount with it. Also, the price of vehicle recovery and salvage has risen dramatically too. Approximately 40% of the average R20,000.00 claim is made up of getting the vehicle from the site of the accident to the repairer.

Many people are looking for cheap car insurance in South Africa and for a good reason too. It’s no wonder then some comprehensive car insurance companies have been forced to increase their premiums materially each year to keep their motor portfolios out of the red. Many car insurance companies are shifting their practices away from a “replacement of parts” approach to a “repair what can be repaired” approach.

Car insurance companies may make regular increases in their car insurance excess amounts. What this means is that car insurers are expecting their clients to carry an ever-increasing financial burden from their private funds. So, in effect, cheap car insurance could turn out to be expensive car insurance due to significant excess payments.

An affordable range car insurance plans is available with Prime

Poor road maintenance and ineffectual policing – can cheap car insurance save the day?

The poor state of South Africa’s roads has further aggravated the car insurance crisis with annual road deaths approaching nearly 20,000 people each year. Enormous potholes, faded road markings and signs, and faulty or broken intersection robots generate an enormous amount of otherwise avoidable car insurance claims.

Ineffectual traffic policing and general impunity to South Africa’s road traffic laws are another major contributor to otherwise avoidable car insurance claims. If only South African consumers could access innovative, cheap car insurance products that were affordable yet offered meaningful protection.

Poor economic conditions and mounting financial pressure – cheap car insurance is essential

The fact that nearly 7 in 10 vehicle owners do not have car insurance is not that surprising. When one carefully considers the colossal cost of vehicle ownership and the princely price of comprehensive car insurance, the answer becomes abundantly clear. South Africans need cheap car insurance.

Most of South Africa’s 10 million vehicles are financed by one of the major banks. Therefore, each vehicle owner needs to make a monthly debt repayment on their vehicle unless they wish to have their vehicle repossessed. This repayment often represents a significant percentage of the average South African’s income.

Fuel prices have been steadily rising with the State not passing on the savings from decreasing international crude oil prices to SA consumers. Instead, the fuel levy has been increased to fill this void with bigger taxes.

Vehicle servicing costs can also be high with many motorists not being able to regularly maintain the recommended manufacturer service cycles. This accounts for a large portion of car insurance claims that relate to mechanical or electrical failures.

And then there is the issue of insurance. After finance repayments, fuel and maintenance costs, car owners still need to find room in their strained budgets for car insurance. To make matters worse, comprehensive car insurers apply what is called risk profiling.

What this means is that affluent South Africans living in safer areas with lock-up garages, who drive expensive cars with leading security measures get the best deal on car insurance. Ordinary South Africans living in the real South Africa, driving ordinary cars pay proportionately more for their insurance. It’s understandable then how short term insurance is almost always the first thing to be dropped during a tough month.

Are you looking for affordable car insurance?

Are you looking for cheap car insurance for your car? Have you collected a few quotes? South African car insurance companies need to reinvent the wheel and come up with some new cheap car insurance options for real people with real financial constraints. The old suite of products is just not meeting the current needs.

Clever products with great benefits – cheap car insurance is a reality

Whilst the uptake has been slow, it seems that some car insurance businesses have already responded to South Africa’s car insurance crisis with sustainable solutions.

Imagine cheap car insurance that cost as little as half of what comprehensive car insurance costs. Imagine low-cost car insurance that suits your needs

Imagine cheap car insurance with no risk profiling and a one size-fits-all approach to policy pricing. Imagine affordable car insurance that could be masterfully flexed according to your needs and budget. Imagine. Sounds almost too good to be true. Strangely enough, all of these things are actually available right now.

Organisations like Prime Meridian Direct have developed innovative, cheap car insurance solutions that can fit just about any budget. Perhaps there is hope yet for South Africa’s car insurance crisis. Cheap car insurance is the solution for ordinary South African motorists, which they can budget for too.

South Africa’s car insurance industry in 2021

What is the situation with the car insurance industry in 2021? The car insurance industry shows promising potential. The South African economy has been affected by various factors, such as the junk status announcement in 2017.

How will SA’s current economic climate affect car insurance?

You may be curious, “Why do we need affordable vehicle cover?” With today’s economic climate in mind, living expenses are just increasing daily. In most cases, the cost of car insurance will increase going forward. However, that is not the case with all insurance companies. For example, Prime Meridian Direct’s car insurance has fixed premiums* regardless of any economic changes.

According to Herald Live, South Africa’s junk status will increase the cost of your car insurance through possible hikes in car insurance premiums. The South African Insurance Association (SAIA), which represents almost 60 short-term insurers, warned that the downgrade would have a serious impact on consumers. Vivienne Pearson‚ SAIA’s chief executive, said that the downgrade was expected to affect the short-term insurance industry in particular.

You may ask, “When should you start looking for cheap car insurance quotes?” It may be a good idea to continually evaluate each of your monthly expenses as part of your monthly budget.

You may have made up your mind, so, now, where and how should you get cheap car insurance? We recommend that you only consider South African insurance companies that are registered FSPs (they have registered as Financial Service Providers with the Financial Services Board) and to avoid ‘fly by night’ companies. There are many leading South Africa car insurance companies to choose from, which are registered FSPs. A few insurers offer convenient online purchase platforms, which take the hassle out of getting quotes and switching insurance providers.

What should car insurance policy holders consider?

The idea of possible premium increases was echoed by Automobile Association spokesman Layton Beard. He said that the likelihood of premium increases could possibly result in the cancellation of car insurance policies.

Nevertheless, policy holders need to seriously weigh up the consequences of cancelling a policy. They need to realise that it is a great risk not to insure their cars, seeing that 65% of all cars on the roads do not have car insurance.

So, although at the time you may think it is too expensive to pay those premiums, just remember that if you are involved in a car accident, where both cars are not insured, the cost of repairing your car could well be beyond your reach.

Prime continues to provide cheap car insurance

Through leading innovation in the car insurance industry, Prime has pioneered a new class of affordable car insurance products that is able to achieve premium rates more than 50% less than those of traditional, comprehensive motor insurance. South African’s also don’t have to worry about increasing premiums because Prime’s premiums are fixed*. That is extra peace of mind when most other household expenses are on the increase.

Car insurance customer review

We stand by our car insurance products as a solution to South Africans’ car insurance needs. Don’t just take our word for it, below is a customer review via HelloPeter Samson Samuel Khoza who wants to rate Prime 6 out of 5, had this to say about Prime’s car insurance:

“Had a car accident in March 2017 and I am done with all required steps of my claim. Every single person in the process has been good with me and I am asking myself, “why such a wonderful courtesy to me?”. I have mentioned specific and wonderful persons that assisted in my previous reviews but to this end I have to mention Lynette Jacobs and her colleague Anna. The two finalised my claim to my advantage without annoyance. This brings me to a conclusion that it is a culture at Prime to employ people who don’t know how to do the wrong job. I wish I could rate Prime and its staff with a 6th star.”

Car insurance quotes – compare online

If you want to buy a car, but would like to “shop around” and compare offers online for affordable car insurance quotes from reputable companies, then read further.

What kind of car insurance type are you looking for?

Car insurance is obviously not just “car insurance” – there are several types of car insurance, some are cheap others are not. There are a few that you need to know about, there are just a few of the types of insurance you get. Even if you did know all these types of insurance before, you may well need to be reminded about them and research them in more detail.

Comprehensive car insurance

This type of insurance covers any damage caused to your car in an accident, or loss through fire and theft. The third party, which comprises the driver and passengers of the other car involved in the accident, are covered for any injuries sustained, as well as any damage to their car. Hence the name “comprehensive” is used, as the cover is pretty comprehensive.

Third party, fire and theft car insurance

This is a cheaper alternative to comprehensive cover. This type of cover does not insure your car for any damage caused in a car accident, but your car is covered in case of loss through fire and theft. The third party’s car is covered for any damage to it that is caused by the accident.

Third party car insurance

This is what is sometimes called basic cover. This is the cheapest type of car insurance. Your car is may be covered by a growing car insurance benefit for any damage when in an accident, and the other car is. The value in this must not be understated, it is very helpful, because it should provide cover worth a large sum of money to cover the damage to the other vehicle involved in the accident. The third party cover and benefits depend on the car insurance company, which have terms and conditions that apply with all car insurance policies.

The above is a brief general description of a few types of car insurance out there. Remember that when getting quotes to compare against each other, it will be meaningless if you compare apples with pears, for example comparing a comprehensive policy quote with a third party quote as they provide totally different cover options to you. You need to compare cheap cover quotes that offer the same cover option in order for the comparison to be worthwhile.

So what’s the next step?

Personal information needed for car insurance quotes?

You need to do a bit of homework if you want to get hold of those car insurance quotes. This information is vital to insurers because all their calculations on how “risky” you are, is based on the details you supply to them. Examples of these are:

• The age of your car – the year and model. Some car makes are famous for their expensive spare parts. The premium is also based on how old your car is. The insurance premium should be cheaper if the car is an older car.
• Your age – the older you are the less risky a driver you are considered to be because you will have obtained many years of driving experience.

First things first – which companies are reputable in selling car insurance?

You are wanting to buy some car insurance for the new car that you will get next week. Naturally, no one just knocks on the door of any type of car insurance company. There’s no point going to a website, enter your relevant personal details, and then receive quotes on comprehensive insurance from six insurance companies, four of which you have never heard.

You need to find out which are cheap and reputable. You will need to look at and consider which companies have a good record, and get praised in surveys conducted by independent researchers? Which ones have a well-known and reliable track record? Etc. You can also confirm and verify your choices with family and friends, and if they have heard any bad reports about the companies you have selected. Once you have approved of a group of car insurance companies that you feel comfortable with, you can then move on to the next step, which involves two options.

Contacting by phone or email each car insurance company for a quote

One option would be to phone or go online and contact say six companies, and spell out to each company what you are looking for, and then obtain a quote. This process may well be quite time-consuming to find the cheapest quote.

Going online and connecting with a website that provides multiple quotes from various car insurance companies

The second option is to go online and obtain cheap car insurance quotes from different car insurance companies by using websites that specialise in providing a variety of cheap car insurance quotes free-of-charge. Remember that there are always certain safety precautions you should take when you go online.

Make sure that the website collecting quotes for you is secure

Before you even start comparing cheap car insurance quotes online, you must think of general online security.

There are websites out there that are secure. How can you tell? Well, look for both the “https” or the lock icon at the beginning of the website address. The website is not secure when:

• the “s” is missing, and that’s when you only see “http”
• you see for instance a small “earth ball” showing longitude and latitude lines, and which is situated just before the website address starts. Rest the cursor on that ball, and click on it. It will tell you something to the effect that your connection with this website is unprotected, which means that you must not release any password or credit card information, as this could be stolen by cybercriminals.

You have selected a secure website that provides you with car insurance quotes

Many websites can provide you with cheap car insurance quotes. Check if these care insurance quote comparison websites are secure websites – you will notice the little padlock icon near the website address. This website provides you with two options – the first is that you leave your name, and contact details and they will get back to you for a “quick” quote. If you want an online quote, they ask you for your car’s details such as the year of manufacture, make, model, and colour. Also requested is the annual mileage done with your car, and whether you are the owner of the car, or you are thinking of buying this car. Finally, they want to know what is the car used for – mainly business? Finally, where is the car parked at night and under what kind of security?

The InsureAcar website is another secure website that can provide you with quotes from different insurance companies for any particular car insurance plan.

Buying car insurance online– how convenient can you get?

You’ve read about how to compare car insurance quotes online. Why not contact Prime online and compare the cheap car insurance quotes with the ones you have already received? Prime has designed a new Online Insurance Purchase Platform to make your online purchase of car insurance as convenient as possible.

Use Prime’s new online insurance purchase platform and follow the short and easy steps to buy car insurance

Prime’s new Online Insurance Purchase Platform is second-to-none in providing you with easy and short steps to purchase your affordable car insurance package, which you are able to arrange according to your specific needs by being able to add or remove options on the cover package you select. Going online is really convenient, because you can do so any time of the day or night, without having to talk to anyone. However, should you need or want more assistance over and above the audio and video material available on the site, you can use the call-back facility and talk to one of Prime’s agents.

Why compare cheap car insurance quotes?

‘What should I look out for?’ is one of the questions that immediately comes to mind when asked why you should compare car insurance quotes to find the cheapest option. It’s not only the best price that counts.

How can you compare insurance quotes if you don’t know what you want covered? What, for instance, are the minimum boxes that should be ticked before you can be satisfied that you are safely covered? You may sign up for a cheap car insurance quote, only to discover that they have massive excesses.

Let’s read on and find out what boxes should ticked when comparing quotes to find the best option which is both cheap and what you need from a car insurance offering.

In stressful times, households tend to first cut back on car insurance payments, and for this reason, car insurance companies are doing everything they can to keep their clients.

Comparing car insurance quotes

You have made several enquiries from various secure websites that provide a number of cheap quotes from different car insurance companies. Each company says they are the best value for money but somehow you need to know what to look out for with each quote. In this way, you are able to establish which car insurance policy qualifies to provide you with the right cover. By the way, you also need to filter the quotes by considering only those companies that have been rated as among the best. These insurers are well rated for a reason.

Check each car insurance policy to see what it covers and what it doesn’t.

You need to do some research to establish what kind of cover you need for your specific situation. If you need extra assistance to understand a particular policy, a qualified financial advisor can help you. You will begin to discover what you want by going through various quotes and policies. This will also help you identify what you don’t want. You are establishing your insurance plan that fits your situation the best by doing this. After that, you are in a position to examine the insurer’s website for what is on offer. Another issue to look at is how well the insurer works through claims – are the claims done fairly and reasonably quickly? This kind of information can be obtained from the Ombudsman for Short-Term Insurance (OSTI).

What about comparing monthly premiums?

Never choose an insurer only because the premiums are nice and low. You need to determine that the cover provided fits your risk profile. If you are counting your pennies, at least start with very basic cover such as third-party.

Make sure you understand the car insurance policy benefits

This is very important and you need to be sure you have examined the policy benefits carefully as described in the policy. Are most or all of the benefits shown in the policy acceptable to you? For instance, if you want to have road and medical assistance, are they included in the policy or can they be included in the policy as an optional item? After you have signed up for a particular policy, you don’t want to find out that there is no roadside assistance when your car breaks down at night in some unsafe area. You need to know what you can claim for, well before it comes to claim time.

The car hire benefit

This is something that some insured people may forget to enquire about it. A car hire benefit cannot be underestimated. It is common knowledge that after you have crashed your car, it seems like your ‘legs have been removed for the next 2 weeks.’ You have to arrange for a lift to work, or may be borrow your neighbour’s car. For an extra small additional premium every month, a hired car is made available to you for a specified period of time or under certain sets of circumstances. The impact of this is something to be experienced. Even though your car is out of action, it is almost as if nothing has happened and life just carries on as normal. It is always a good idea to find out if this option is ticked on your policy and decide whether you want to include it.

Does the policy cover alternative drivers?

It may be very important in your particular situation to ensure that the insurance quote being offered you covers your car when it is driven by an appointed alternative/nominated driver. Some company quotes won’t require you to specify who is the regular driver and who else will share the driving, but when it comes to claim time, they will charge you extra if your boyfriend drove the car. Other companies require you to specifically nominate a second driver and you will not have cover unless it is noted on your policy schedule beforehand. It is important for you to find out what your policy requires and make sure you appoint or nominate an alternative driver if it is an option that you want to have cover for.

What about the excess?

It is a standard practice that an excess is part of car cover. This is where some cheap car insurance doesn’t become affordable any longer due to large excess payments that are required if you want to claim. This is the part that comes out of your own pocket when submitting a claim. You need to establish if the excess is fixed or does it form a percentage of the total cost of the claim? Decide if you are comfortable with the risk of having a high excess and low monthly premiums. If that is the case, you would want to ensure that you have some cash saved somewhere that covers that large excess, so that you will be able to pay it in the event of a car accident. You never know when an accident might happen so you need to be prepared at all times. Another consideration for your policy is to be sure about whether the premium will go up after a claim or not, or whether it is fixed for a certain amount of time or not.

You need to know the exclusions of the policy

The company that provided you with this amazing, affordable quote has placed certain exclusions into the policy. You need to study the exclusions. They say prevention is better than cure – you don’t want to discover at claim time that you can’t claim for a specific situation because it is part of the exclusions and you didn’t take the time to read your policy. An example could be of a tow truck owner who can’t claim on that damaged car he was towing because one of the truck’s chains was not properly locked into position and this is an exclusion that his policy included.

Is your car covered outside South Africa’s borders?

You suddenly get invited to join your friends on an exciting fishing trip in Mozambique. Off you go, and then your car unfortunately hits a goat in an isolated rural area, and the car can’t go any further. What now? Will there be any roadside assistance available from South Africa? You will have to ask your insurance company for a certificate that clearly states that your car is covered after you have crossed the South African border. This certificate will have to be presented to the customs officials. Some policies do not cover you outside of South African boarders, it is a good idea to check your policy for this.

Insure your car for its retail value or trade-in value

Car insurance companies will usually either insure your car based on its retail value or market value. Retail value is often said to be the best option but you should decide on this for yourself. You can lower your car’s premium if it is insured based on its trade-in value. This value is usually lower than the retail value, and is the amount that car dealers pay out when you trade in your car for the purchase of a new car.

What happens if your car has been modified?

In the event that your car has been modified the insurance company will request that you provide them with a written valuation certificate of the value of the car. Some companies don’t cover modified cars or charge an extra premium because of the modifications. It is important that you disclose modifications and don’t not say anything because the insurer would need to consider this as a factor when assessing your risk and not disclosing it could lead to your claims being rejected.

Comparing insurance quotes means you must supply the same information to every website

You will need to supply the same information to every website that will provide you with a quote. This is because you are then providing them with the same risk profile. You can’t present different risk profiles to different companies. After you have studied several quotes / policies, you will begin to have a ‘feel’ for what is made available to you in terms of cover. From that kind of research you can draw up a list of boxes that you feel should be ticked for your particular situation. When you have done that, you will be in a strong position to compare the quotes and select the best one for you.

Are you looking for a cheap car insurance quote online?

Is South Africa ready for a fully-online car insurance experience?

Although no information about trends in buying car insurance online in South Africa could be obtained, we can take a look at local trends in e-commerce.

E-commerce in South Africa – what is the trend?

Buying cheap car insurance online forms part of e-commerce, and thus looking at the growth trend of e-commerce in South Africa will give you an idea of how likely online shoppers will buy online car insurance.

E-commerce is growing at a phenomenal rate

A Fin24 article of 22 February 2017 says that e-commerce in South Africa is growing at an explosive rate. A large increase in e-commerce was attributed to entry of cell phones into the market place, as well as much cross-border shopping. Car insurance is part of this revolution, which has made it much easier to find cheap car insurance deals.

South African online spending forecast for 2018

South Africa’s online spending is estimated to exceed R53 billion by 2018.¹ Much of this will be spent on cross-border buying, involving the US, China, and the UK.

After some initial slow growth, online shopping is set to soar

Will the increased momentum in online shopping continue?

It is predicted that the recent growth trend will continue. In a survey, 53% of interviewed online adults have indicated that online spending in 2017 will increase even more. Of these 53%, 84% ascribe the continuing rapid growth to the enjoyable ease of shopping online. Another 38% say that this growth is due to people wanting to save more, and another 36% attribute this growth to increases in their disposable income.

2018 trend in cell phone commerce

More and more South Africans are using their cell phones to shop online, resulting in a spend of R9.5 billion between 2015 and 2016. This spending trend is expecting to continue, resulting in an estimated increase of 123% by 2018.

Some advantages of buying car insurance online

Online purchasing of car insurance is made available by many insurance companies in Kenya. The article asks what can persuade traditional buyers of cheap car insurance to go online instead?

Buying online car insurance is cheaper

Buying car insurance online saves you time, as you don’t have to make an appointment and physically drive to an office. Online car insurance can also be also cheaper because no insurance agent is involved.

Easy to compare online quotes

By going online, it doesn’t take long to compare different cheap car insurance deals. You can obtain reviews on online purchases of car insurance, as well as consider any views expressed by clients.

Online buying made easy by a customer-friendly interface

The process for obtaining online quotes is made easy by following a straightforward procedure. All financial transactions are safe and secure.

You can buy online car insurance at any time that suits you.

Everyone is so busy these days that there is little time left to buy car insurance. It’s much easier to buy car insurance online from the comfort of your own home. And you can make a purchase even at midnight if you want to.³

Immediate access to insurance documents and to making changes?

Buying car insurance online means you can print documents straight away. Any changes you would like to make to your policy can also be done online.³

What happens if you have any questions?

When in the process of buying online, you may have some questions. Car insurance companies provide good telephonic support for any such queries.

So where is purchasing of online car insurance going in South Africa?

The way online shopping is exploding in South Africa, is a good indication that it bodes well for online purchasing of car insurance. At the moment, the car insurance industry is ‘stuck’ with 30 – 35% of insured motorists. Once third party car insurance is made compulsory in South Africa, growth in both traditional and online purchasing of car insurance could explode. The one of the restrictive issues for buying insurance online in South Africa is that not everyone has a computer and access to the Internet, although just about everyone has a cell phone.

It would be interesting to see what percentage of the total of 30- 35% of insured South African motorists have bought car insurance online.

Why not buy affordable car insurance with Prime by using their online insurance purchase platform?

You’ve read how beneficial it is to buy car insurance online. Prime has designed an Online Insurance Purchase Platform to make it easy and fast for you to buy their cheap car insurance. You can make a purchase at any time you like, and modify the policy to suit your requirements. But you are not alone – if you have any questions, you can resort to a call-back facility or make use of the audio and video materials.

How much is car insurance per 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 cheap car insurance to suit your budget.

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. According to the credit provider, the average monthly motoring cost for South Africans was R7,119.80 in July 2017. 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 the price of an entry-level car costing R100,000.00 in 2007 and R183,000.00 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 R300,181.00 whereas used vehicles averaged at a cost of R202,796.00.

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, the 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 the 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

You’ve read largely uncomfortable news regarding how expensive it is to run cars today as well as have car insurance. But, today Prime is offering you, the motorist, some good news – affordable car insurance.

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.

How can car insurance help protect your financial wellbeing?

We often hear of stories where people are involved in accidents with other motor vehicles. The uninsured driver wrote off his car, and, the driver who is at fault must often contribute to the other parties damages too. That is when people often wish they had insurance, even if it was only for third party damage. You don’t want to experience the above, and this leads us to answer the question, “Is car insurance really necessary?”

Disclaimer

This article does not provide any professional insurance advice, but only information. Insurance is not straightforward, and, if you wish to purchase a particular car insurance product, please contact a financial advisor for professional advice.

Car accidents won’t happen to me

People often think that they will not be involved in an accident. This type of thinking is common. No one wishes to be a prophet of doom and tell people that they will have an accident some time or other, but, for many, this is, unfortunately, a reality. You may reason that “I drive slowly and only short trips to the office and back so nothing will happen to me. I don’t live in the fast lane where all the accidents happen.” Even if you have an accident-free record, there is not a 100% guarantee that you won’t ever have one.

How many motorists are insured in South Africa?

What are the chances of a third party on our roads not being insured? Seven out of every 10 motorists, or 8.4 million, have no car insurance in South Africa. Unfortunately, most third-party insurance is not compulsory in South Africa. Thus, you can’t bank on a third party being insured and covering your car, should it be their fault in causing an accident.

What could the financial impact be if you are not insured?

Having no car insurance cover in place may expose you to unnecessary financial risk, and many people are not able to absorb this risk. This is why you may want to consider taking out some form of insurance, there are many options available in the market.

Why take a chance? Buy affordable cover with Prime

Reading this article has hopefully made you aware of the importance of having some kind of car insurance cover. If you can’t afford much, start off by buying third-party car insurance with Prime. Go online using Prime’s Online Insurance Purchase Platform whenever it suits you. The entire procedure is quick and not difficult, and a call-back facility and additional audio and video materials are there for you, in case you need help.

Tips to save money when buying car insurance

We all want to find ways to save money, whether it is where you buy groceries or how much you pay for your car insurance. Buying your groceries may be an easy choice. However, more thought may need to go into which insurance company you insure with. When it comes to car insurance it can be quite difficult to choose the right one for you. One needs to shop around and see which insurer offers the best car insurance deal. In this article, we will look at the reasons why cheap car insurance is a good idea and how insurance policies work and how you will benefit from them.

What is car insurance?

Car insurance is a legal contract between you and the insurer of your choice. The insurer will help cover you from various types of financial loss: if you were to get into an accident, fire-related damage/loss and/or for theft of your car. Depending on your policy’s coverage and the premium you are paying, what your insurer potentially pays you out for your loss and/or damage to your car may differ.

Types of car insurance

What types of car insurance exist in South Africa? Read on to find out.

1. Comprehensive cover

When you have bought a car on finance, it is compulsory to have comprehensive vehicle cover. Even if your car is fully paid up, it may still be the best option to choose. Comprehensive Vehicle Insurance covers:

• Damages to your own car if you are in an accident (excluding any excess payment).
• Partial or full coverage of the damages on another car that was directly involved in the accident (included in Third Party coverage).

2. Third party cover

Third-party car insurance is the most affordable cover but will only provide cover for the other vehicle.

3. Third party, fire and theft cover

With this type of car insurance, you will be covered for fire damage and for the theft of your vehicle. As well as for third party damage if you are the cause of the accident.

How to save money on car insurance in South Africa in 2023?

Find out how you could possibly save money on car insurance below.

1. Get many quotes

Get more than one car insurance quote. Do your homework. Read the fine print. Work out what exactly you need from your car insurance. For example: when buying a new car, especially if you are financing it, you will have to take the cost of comprehensive insurance cover into account when it comes to drafting your budget. Before you buy your new car, get insurance quotes from different insurance companies to get the best deal. Remember, the cover you decide to purchase depends on you, and what suits you best.

2. When to pick an insurer

Check what each insurer covers and whether cover that suits your car insurance requirements as well as your budget. Always read the fine print before signing the policy contract. If circumstances change in your life, and it may impact your insurance in which case you should evaluate your insurance policy: you could save money, or you may need to potentially change your choice of cover.

Factors that can affect how cheap your car insurance premiums can be

• Where do you live? Does it pose a higher risk to your car?
• Where do you work? Does it present a higher risk to your car?
• Driving a high-risk car could affect your premium. Is your car’s make and model prone to theft/hijacking? If so, you could pay more for your insurance.
• Putting in multiple claims over a short period of time will push up your premium.
• Your age can also impact your premium, amongst other potential factors.
• Who drives your car?
• How far do you drive each month?
• Your credit score could affect your premiums.
• If your car is parked in a garage, your car is safer. You may pay less on your premium.

Ask car insurance companies for clarity on these factors or anything else that could affect your car insurance premiums.

3. Excess

Find an insurer that has an approach to excess payments that suits your wallet and needs.

Whatever your preferences maybe when it comes to affordable or cheap car insurance, and your final choice, remember to shop around and always read the fine print before signing on the dotted line.

Why don’t many South Africans have car insurance?

How many South African motorists have car insurance? Seventy percent of the cars on South Africa’s roads don’t have car insurance. So, only three out of ten vehicles are insured at any given moment while you drive on the road .¹ That’s an eye-opening statistic. Have you ever wondered why such few cars on South African roads are insured?

Disclaimer

Please consult a certified financial adviser before purchasing car insurance. This article serves only to provide general information for illustrative purposes.

Is car insurance a financial priority in South Africa?

Car insurance may not be a priority for many motorists for several potential reasons. These reasons are listed below.

Living expenses keep increasing, and in 2021 it is no different. There have been significant increases in the cost of food, petrol and municipal charges. Eskom has increased its price of electricity steadily over the years. Eskom continues to increase its electricity price and the cost to fuel your car increases too often as well. South Africans that have little disposable income may feel that car insurance is a luxury that they can’t afford.

Car insurance could be viewed as a grudge purchase. Motorists may want to rather spend their money on something that they derive entertainment from instead.

Car insurance can be affordable

Some car insurance companies offer what many drivers consider to be expensive insurance products. However, the belief that car insurance is too expensive may not always be strictly true for most motorists. For example, consider Prime’s Third Party Plus car insurance which starts from R167* per month. That starting price for Third Party Plus car insurance could be the approximate price for buying fast food for two people. Nevertheless, perhaps some drivers fail to do sufficient research when looking into the affordability of car insurance.

Do I need car insurance?

An additional potential reason for not having car insurance is the result of the psychological phenomenon that is called the optimism bias, which can cause people to ignore the truth about the circumstances in which they find themselves daily. In severe cases of optimism bias, people can believe that they are invincible and impervious to accidents. These motorists may think car insurance is not necessary and that they will never need it. They don’t see the need for protection against potential financial risks that car insurance could cover.

Another potential reason could be due to insufficient general knowledge relating to car accident statistics in SA. South Africa has one of the worst road safety records in the world, according to the World Health Organisation.

Some motorists may not have an accurate idea of how costly it could be to fix their accident-damaged vehicle. Alternatively, they are not concerned about the potentially high cost they would have to pay for the repairs of another accident-damaged car, which they may cause.

Do your research before you buy car insurance

Researching your options could save you money should you decide to buy car insurance. Affordable car insurance is available with Prime.

Sources:

1. 12 tips to reduce your car insurance premiums
2. Food prices in South Africa are up in recent months – here’s what you are paying more for
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