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What you need to know about car insurance in South Africa?

Its all Insurance

Posted on Thursday, June 23, 2022

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Car insurance in South Africa can seem like a complex and daunting topic for many. There are so many insurers to choose from, each with similar but slightly different car insurance products. How are you supposed to know which plan is right for you and which insurer will live up to their promises? We’re here to tell you it’s all quite simple when you ask the right people about it (that’s us!). First, let’s take a look at what car insurance actually is.


Why bother with car insurance in South Africa?


Every day, every time you drive, you face numerous risks. These range from driving over a nail and getting a flat tyre, to being in a collision. Whether the damage to your vehicle is mild or severe, someone has to pay to fix it. Because most people can’t afford the high costs associated with repairing a vehicle, they take out car cover. Insurers in South Africa will pay for the damage to your car if something happens to it – or even replace it if it’s stolen – in exchange for a monthly fee, called a premium.

Having insurance is like taking a bet that one day in the future, you will need to repair or replace your car. In South Africa particularly, this makes sense as the country has been voted number one for having the world's most dangerous roads. That makes having insurance a good bet.

If you want to learn more about car insurance in South Africa, keep reading. We look at what's required legally, who offers the cheapest insurance (obviously us!), and how much the average cost of car insurance is. Plus, we go through the risks that the average car insurance policy is likely to cover and examine why having car cover in our country is a must.


Is car insurance mandatory in South Africa?


No, car insurance is not a legal requirement in South Africa. Estimates place the number of uninsured cars in South Africa at around 70% [2], but no one is really sure. On average, only three out of every ten cars you see on the road have car insurance. You are responsible for paying for all repairs if you are a victim of an accident and neither of you has insurance. Add this to the country's high accident rate, and it is highly likely you could be involved in an accident.


How much is car insurance per month in South Africa?


According to a study carried out in 2021 by WesBank, the average monthly installment for comprehensive car insurance is R1,235

But, we can do better! They don’t say we offer one of SA’s lowest insurance quotes* for no reason. Start your vehicle insurance quote online today to find out just how affordable it is. You can even adjust your monthly payments and excess amounts to suit your own budget. 


What does car insurance actually cover?


The most basic plans will generally offer third-party coverage. This essentially covers you financially if you crash into someone else's car or property. It won't payout for your own repair or vehicle replacement, but it will pay for the other person's affected property.

More inclusive plans go a step further and cover the costs associated with the following things:

  1. Vehicle Theft, Hijacking, and Loss

  2. Accident Cover

  3. Car Hire

  4. Severe Weather Damage

  5. Towing and Storage

  6. Breakdown Assistance

  7. Home, Medical, and Legal Assistance.

At Budget, we offer seven different types of car insurance and also several add-ons to make your coverage even better. These can be included in any of our policies:

  • Motor Warranty: Vehicles and their parts do not last forever. With our warranties, you're covered for mechanical and electrical problems.

  • Scratch & Dent: Let us take care of those small but annoying scratches, scrapes, dents, and chips on the body of your car.

  • Tyre & Rim Guard: You don't have to live with scratched rims because you mounted the curb or hit a pothole. You can get the damage repaired or replaced with us.

  • Auto Top-Up: If your car is stolen or written-off, your payout may not fully cover what you owe on your financed car. Auto Top-Up pays the difference.

If you'd like to learn more about the different types of car insurance available to you, discover what's included here.


How to get car insurance quotes in South Africa?


It’s easy! Tell us a little bit about yourself and get a quote in minutes or request a callback and we’ll come to you. 

Budget Insurance Company is an authorised non-life insurer and financial services provider. Life Insurance policies are underwritten by 1Life Insurance Limited, an authorised insurance and financial services provider.