Knowing how much car insurance costs is important for when you are considering getting car insurance or changing your insurance provider.

It’s important to assess the value of your vehicle when it’s time for annual motor insurance policy renewals. This could go a long way towards saving you money on your car insurance. By assessing the value of your vehicle you could save as much as 20% on the premium.

Basics of car insurance:

It’s the insurer’s job to pay for what you are due and not more.

The insurance you are covered for is dependent on factors such as:

  • The model and make of your car. Sporty types cost more to repair so you will pay more.
  • The age of the car and its condition
  • Your age and gender
  • How long you have been driving
  • Where you live
  • Whether or not your car is kept in a locked garage at night

In the event of an accident, the insurer will write your vehicle off if the cost of repairing it exceeds 70% of its value.  The insurer will pay out the vehicle’s market value or retail value. If your insurer pays out at market value, the amount will be enough to replace your car with a new car.

It generally costs more to insure your car separately in a “stand-alone” policy.

Paying higher excess could lower your monthly premiums.

You may also get lower car insurance premiums if you install some form of vehicle tracking technology in your car. This also applies if you fit your car with an alarm or immobiliser.

The more extensive the cover, the more it will cost you. In South Africa, there are generally three types of insurance cover: Comprehensive, Third Party, Fire and Theft and Third Party only.