Nearly 30% of South Africans underinsured:

Johannesburg, 23 June 2025 – As National Insurance Awareness Day approaches on 28 June, Budget Insurance is sounding the alarm: nearly 1 in 3 South Africans who submitted claims after household break-ins in the past year were not adequately insured, often discovering painful gaps in their cover when it was already too late.

And while this points to household cover, the reality is that the same rings true for most short-term cover. In fact, research by Quantam recently indicated that 80% of those with short-term insurance are underinsured by more than 50% of the value of their assets.

Education is still the missing piece where consumers are still largely uninformed when it comes to protecting their assets – with many only confronting the reality of their insurance shortcomings after experiencing a loss.” Says Tando Ngibe, spokesperson for Budget Insurance.

This concerning insight comes amid rising concerns around vehicle-related crimes and increasing misunderstandings about what constitutes adequate protection.

“Too many South Africans don’t understand what constitutes adequate protection. For example when it comes to vehicles, some consumers are under the false impression that warranties and service plans equal protection,” continues Ngibe.

“But a service plan won’t replace your car after it’s stolen, and a warranty won’t help you if your vehicle is hijacked or written off.”

The threat is real - and growing. Budget Insurance’s internal data paints a stark reminder of the reason why insurance is important:

• Hijackings rose by 1% between 2023 and 2024.
• Vehicle theft, while down 9%, remains dangerously high – with an average of 65 cars stolen per day in South Africa, according to Cartrack’s Q3 2023–2024 report.
• 13% drop in household break-ins suggests improving home security, yet 30% of those affected lacked sufficient cover.

“We are seeing encouraging growth in value-added products like warranties and service plans, and notably we are also seeing fewer cancellations, which shows more consumers are thinking long-term

As part of Insurance Awareness Month, Budget Insurance is urging South Africans to review their cover, or lack thereof, now – not after disaster strikes and they are left wanting.

“Insurance needs to move from being an afterthought to an essential; financial consideration,” says Ngibe. “Understanding your cover is not just a box to tick – it’s a financial safety net that could determine whether you recover from a loss, or not.”

A call for insurance awareness

Insurance Awareness Month is more than a calendar date – it’s a wake-up call. In an increasingly uncertain environment, insurance must be seen as a proactive tool for financial resilience, not a grudge purchase. As lives, vehicles, and assets grow in value, so too should the understanding of how to protect them.

“Now is the time for consumers to take charge, ask the right questions, and engage meaningfully with their insurers. Because when disaster strikes, the only thing worse than the loss – is realising you were never properly covered in the first place.”