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How To Pay Less for Car Insurance in South Africa

3 minute read

By Katie Ormsby

Car insurance is an increasingly hefty expense for many South African motorists. In fact, it cost nearly 40% more per month to keep a car on the road in 2022 than it did five years before.1 That staggering jump includes the overall cost of running a car, including fuel and car insurance. As prices soar, it makes sense to look for ways to spend less on auto insurance.

Fortunately, there are practical ways to save money without compromising your coverage. Let’s explore the benefits of shopping around regularly, adjusting your excess, choosing an insurer that embraces technology, bundling multiple policies together, and paying your premium in full. With strategies like these in mind, it’s possible to lower the cost of car insurance.


Shopping Around Regularly

Shopping around for car insurance can be an effective way to pay less for auto insurance. Whether you’re shopping for your first car insurance policy or renewing coverage, it’s a good idea to request quotes from multiple insurers. Be sure to compare quotes before accepting an offer from a new provider or an annual increase from your current provider.

It’s just as important to shop around if you’ve been with the same car insurance provider for years. That way, you can ensure your provider isn’t taking advantage of you and make sure you find the lowest price possible. Many drivers accept their provider’s annual increase without looking around, but this can be a costly mistake. Shopping around can pay off.2

Adjusting Your Excess

An excess is the amount of money you’re required to pay when making a claim with your insurance provider. The higher the excess, the lower your premium will be. So, increasing your excess is another way to lower the upfront cost of insurance.

However, increasing your excess means you’ll need to pay more out-of-pocket should you make a claim. For that reason, it’s important to pick an excess you can comfortably afford to pay. Ideally, you can find a sweet spot when adjusting your excess.3

Choosing a Tech-Focused Insurer

Look into digital insurance providers that embrace technology because they may employ tech features that can save drivers money. For example, some digital insurers use telematics to monitor your driving. Certain behaviors like driving less can result in cashback to customers.4

Digital insurers also tend to have more streamlined claim processes, saving drivers time and headaches. Plus, insurers that embrace technology typically offer a tool you can use to play around with your excess amount to see how much you can save by adjusting the excess.

Bundling Policies Together

If you have multiple types of insurance, then consider bundling those policies together. Bundling can help you save money in a couple of ways. For one thing, many insurers give discounts to customers who have multiple policies with them.

Additionally, it can save you when it comes to your excess. That’s because your bundle may have one excess. So, should your car and home sustain damage in the same covered event, you would only need to pay one excess, not two.5

Paying Your Premium in Full

Paying for your car insurance premium in full upfront can save you money in the long run. Many insurance companies offer discounts to customers who opt to pay their entire policy at one time instead of making monthly payments.

Paying the premium upfront is an especially attractive option if you can afford it because it not only gives you a discount but also ensures you’re not charged interest on your premium. So, it’s worth looking into paying upfront for the year.6

Getting Affordable Car Insurance

No matter how much or how little you’re paying for car insurance each month, taking the time to compare policies and prices is always a good idea. Shop around to find the right coverage for your needs. That way, you can stay safe on the roads and save money in the long run.

It’s possible to save by shopping around, adjusting your excess, choosing an insurer that embraces technology, bundling policies together, and paying upfront. If you’re looking for cheaper car insurance, then these are a few of the strategies to consider giving a try.

Katie Ormsby



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