How much does car insurance cost? | King Price Insurance

Did you know that in 2022 it will cost the average South African 39.41% more per month to keep a car on the road than it did 5 years ago? To put it in simpler and more frightening terms, the monthly rands and cents it cost you to own a car was 6,711.24 rands in 2017. This year it will cost you around R9,356.80 including the cost of vehicle financing installments, gas, running costs and of course car insurance.

As costs continue to rise, it’s understandable that we’re all looking for ways to keep our expenses down. First we’ll break down how insurance fees are calculated and then we’ll show you the best ways to keep your insurance costs down.

The average cost of car insurance in 2022

We’ve gotten the detailed running costs for a specific type of car (untitled) to give you a good idea of ​​what you can pay for car insurance on a monthly basis in 2022.

What we discovered is that the average monthly cost of insurance is R1,322.13, which is handy to know… Sort of. Actually, this amount will not help you if you do not know what type of car it is, what type of insurance was chosen and who the policyholder is. Oh, and who the insurer is.

Here are 3 specific examples from our own records:

  • A 49-year-old woman paid a ridiculously low R385 a month (with R4,500 excess) for her 2019 Hyundai Atos 1.1 Motion.
  • A 40-year-old man was paying the oh-so-affordable R530 a month (with R4,500 excess) for his 2019 Suzuki Swift 1.2 GA.
  • A 34-year-old woman paid a tiny R421 a month (with R2,500 excess) for her 2021 Renault Kwid 1.0 Climber.
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This is how your premium is calculated

Let’s talk a little more about why the details matter when it comes to calculating the premium you pay for your insurance coverage.

You see, insurance companies in South Africa, including us, take many factors into account when creating your policy. Some of this information is obvious, like the make, model, and value of the car itself. You might even assume that we need to know where you park your car each night because that speaks to the kinds of risks we need to consider when we insure your car.

But there are other factors we rely on, including:

  • The level of coverage you choose: Some policies are more expensive than others, with comprehensive insurance being the most expensive and third party insurance being the cheapest.
  • What you do for a living: If your job involves a lot of driving, you’re likely to pay more than someone who spends less time on the road because there’s a higher risk of getting into an accident or other incident.
  • How much you drive: The more you drive, the more likely it is that you could be involved in an accident, which is why we ask you to estimate how much you drive each month.
  • Your age and how long you have ridden: We take both your age and experience into account, because neither factor alone paints a complete picture of your specific risk profile. For example, a respectable 38 year old who has only had a driver’s license for 2 years might be more risky to insure than a younger but more experienced 25 year old who has had a driver’s license for 6 years.
  • Improvements to your car: Any changes should be reported to us as they could affect your premium. But don’t worry, not all modifications lead to higher rewards! For example, if you fitted your car with an immobilizer, tracking device or rear sensors, you could end up saving.
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The key to lower premiums

There are a few surefire ways to keep your auto insurance premium low:

  • If you insure 2+ cars with us, you will receive a 20% discount on your premium. You can even increase your savings by insuring your buildings and contents with us.
  • A higher deductible can lower your car insurance premium. You see, there is a seesaw effect when you look at the relationship between your premium and your deductible. The higher your deductible, the lower your premium and vice versa. However, such a decision should not be taken lightly. A higher deductible means that you will have to pay a higher one-off amount when you report a claim to your insurer.
  • And of course, one of the best ways to reduce your premium is to lower your risk(s). Where you used to park on the sidewalk, it would be great if you could find a safe place to park your car behind a locked gate or in a garage. Let us know about such upgrades so we can lower your premium.

If you’re in the market for easy, cheap car insurance, just WhatsApp us on 0860 50 50 50 to find out more about our products, or click here for a quick no-obligation quote.

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