Get peace of mind with cheaper car insurance

What Does Car Insurance Usually Cost? 

How long is a piece of string? It depends. Unfortunately, it’s the same answer to the question 'What does car insurance usually cost?'

There are a bunch of factors that insurance companies use to figure out what your monthly premiums will be. So it’s impossible to give a one-size-fits-all answer to this question.

That said, you can choose between three different types of coverage in South Africa. While some are pricey, there are cheaper car insurance options, too.

Comprehensive: Premium Coverage for Complete Peace of Mind

Comprehensive car insurance covers you for a wide range of scenarios. Whether you’re involved in an accident or if your car is stolen, burnt to a crisp or damaged due to a natural disaster, you’ll be able to claim.

Of course, this all-inclusive cover means that comprehensive car insurance tends to be the most expensive option.

Third Party, Fire, and Theft: Cheaper Car Insurance That Balances Protection and Premiums

Third party, fire, and theft cover is the middle ground. It lets you claim to repair damage you may have caused to another person or their vehicle in an accident. Plus, you can get a payout if your car is damaged or destroyed in a fire—or if it’s stolen.

This cheaper car insurance option strikes a balance between having protection for your ride and leaving you with some funds for fun at the end of the month.

Third Party Only: Basic Protection for a Bargain Basement Price

Third party only exists to protect you against claims from third parties for damage caused by your vehicle, but it doesn’t cover your car.

Third party only insurance is the most budget-friendly option. So, if cost is a big deciding factor and you’re willing to take on the risk of covering damage to your vehicle yourself, this might be the best choice for you.

Levels of Coverage for Different Car Insurance Options

Price tier	Most expensive car insurance	Cheaper car insurance	Cheapest car insurance
Comprehensive	✅
Third party, fire & theft	✅	✅
Third party only	✅	✅	✅

How To Get Cheaper Car Insurance

Finding the sweet spot between affordable car insurance and sufficient coverage can sometimes feel like trying to navigate using a map—in the dark. Fortunately, your trusty insurance co-pilot hippo.co.za is here to guide you through the world of cheaper car insurance.

Here are our top tips for how you can lower your car insurance premium—or get cheaper rates—without too much fuss:

• Compare Car Insurance Brands
  

  Back in the day, figuring out which insurer would give you the best benefits for the most wallet-friendly price was like trying to find a needle in a haystack. You’d have to spend hours on the phone. But, fortunately, times have changed!

  Thanks to hippo.co.za, finding the cheaper car insurance options that suit your budget and lifestyle is a breeze.

  Think of using hippo.co.za like speed dating, but for insurance. There are no strings attached when you get a quote and it’s fast, fast, fast! We give you the ability to compare South Africa’s best insurers and their different policy options in minutes.

 

• Consider a Higher Excess Amount
  Excess—that’s the amount of money you’ll need to pay in when you make a claim—shouldn’t be excessive. But tweaking your liability in this area of your policy structure can give you a big advantage.

  You might want to consider upping your excess to shrink your monthly premiums.

  You can set aside a portion of the cash you’re saving by having cheaper car insurance each month to ensure you have the excess amount on hand if anything goes wrong.

 

• Change the Insured Value of Your Car
  It’s car insurance, chameleon mode. You can change your monthly premiums based on the value that you insure your car for. The lower the value, the lighter the load on your wallet.

  There’s retail value, market value, book or trade-in value, and agreed value. All of these can be adjusted based on your car’s make, model, year of manufacture, condition, mileage, and other factors.

  Just a head’s up, though: If your car gets stolen and can’t be recovered, or is written off after a collision, insuring it for a lower value means a smaller payout. So you could end up shouldering a bigger financial burden in the long run.

 

• Reduce Risk Factors
  Insurance premiums are all about your risk profile. So, if you’re in the danger zone for theft or accidents, your premiums will climb pretty quickly.

  Some things, like your age or where you live, might not be entirely in your control. But there are a couple of factors that you can influence to help lower your monthly insurance costs:

  • Security: Keep your car in a locked garage, if possible. If that’s not an option, be sure to install an alarm and tracking system to help keep thieves at bay.
  • Safety: Choose a ride that will keep you safe on the road. The safer your car, the less likely it is to be written off if you have an accident.
  • Drive well: Don’t channel your inner speed racer when you’re getting from point A to point B. Driving carefully will help you to reduce risk and build a solid driving history. An advanced driving course wouldn’t hurt, either.
  • Drive less: If you can, stay closer to work to reduce the time you spend on the road. Less time driving means less opportunity for being involved in fender benders or other accidents.
  • Be honest: As they say, honesty is the best policy. Don’t try to hide anything from your insurer—it could end in you not getting a payout when something does go wrong.

 

• Combine Home and Building Policies
  Think of combining your insurance policies like having an orchestra play a symphony. Your policies are the band members, your insurer is the conductor, and the coverage you get is the sweet melody.

  Bringing your home, car, and home contents insurance under one insurer can help you save big. As in R597 per month kind of big. Plus, letting one provider handle everything will allow you to simplify your life and reduce the amount of admin you have to take care of when claiming.

Cheaper Car Insurance in Practice: What Will the Different Levels of Cover Get You?

What Things Make Your Car Insurance Cheaper?

You want to know how to make car insurance easier on your wallet, right? But before you can understand how to do that, you need to know how insurers calculate your monthly premiums.

Most insurers have a handy car insurance premium calculator that they use to figure out what they’ll charge you each month. It’s not the kind of calculator that you used to do sums in school. It’s more of a formula that factors in all the elements in your risk profile to determine how likely you are to claim.

Is There Anything That Will Make Your Car Insurance More Expensive?

Few insurance policies are stock-standard. You can usually add a bunch of bells and whistles to customise your cover to fit your needs.

Extras can be really useful if you’re able to pay the additional monthly premiums and you don’t want to be out of pocket when something goes wrong. That said, they will cost you. You’ll probably pay more if your car insurance policy includes:

• Hail damage: Have you seen those hail stones that are the size of tennis balls? They're nasty! This type of damage can be extremely expensive to repair, so insurers often allow you to add it on as an extra form of cover.
• No claims bonus: The longer you go without making a claim, the more you save. It's a reward for your stellar driving record, but you may end up paying a little extra each month for this perk.

Who Offers the Cheapest Car Insurance Quotes in South Africa?

Sorry to say, there isn't a single answer to this question. Why do all the important questions have to end in 'it depends'?! There are loads of car insurance companies in South Africa, each with their own unique offerings and premium structures. What you end up paying each month will depend on your risk profile as well as the standard terms and conditions of your chosen insurer’s cover.

There are loads of car insurance companies in South Africa, each with their own unique offerings and premium structures. What you end up paying each month will depend on your risk profile as well as the standard terms and conditions of your chosen insurer’s cover.

Is Cheaper Car Insurance Still Good?

In short: yes.

Having cheaper car insurance is better than having no insurance. Naturally, more comprehensive policies will give you better coverage, but a cheaper option can give you the peace of mind you need without breaking the bank.

Before you jump at the chance to have cheaper car insurance, you’ll need to train your eye to find the best bargain. There are a range of exclusions and limitations that can come with lower premiums.

• Higher excess: Some car insurance policies might be cheaper because you’ll be expected to pay in a bigger sum if you claim. If this is the case, you’ll want to be sure that you can afford this payment if something were to go wrong.
• Fewer perks: Cheaper plans may not include additional perks like roadside assistance or 24/7 support, which could put you in a bit of a predicament if you find yourself stranded on the side of the road at midnight.
• Limited coverage: Certain events, like your car being washed away by floodwaters or damaged due to another natural disaster, might not be covered under cheaper car insurance. Be certain that you’re not exposing yourself to a big financial risk because of this.

Compare Insurance Options Yearly

A lot can change in a year. You might buy a new house in a less risky area, get an advanced driving license or drastically improve your credit score. All of which will affect the price of your insurance premiums.

Set an annual reminder to hop onto hippo.co.za to compare quotes to find out whether there’s a cheaper car insurance option available to match your changing circumstances.