South Africans are facing rising costs across the board, and car insurance is no exception. While it’s a vital layer of financial protection, many motorists don’t realise that certain decisions and behaviours can cause their premiums to spike. Whether you’re a new driver or have years of experience behind the wheel, knowing what factors could drive up your insurance costs can save you hundreds, if not thousands, of rand every year.
In this article, we break down five of the most common mistakes that lead to inflated insurance premiums in South Africa — and show you how to steer clear of them.
1. Maintaining a Risky Driving Profile
Your driving history plays a significant role in how much you pay for insurance. Traffic fines, accident claims, and reckless behaviour don’t go unnoticed — insurers have access to shared databases and can quickly assess your risk level.
Key Insight:
A single minor incident might not do much harm, but repeated offences like speeding or failure to obey road rules will label you as high-risk. This makes you more expensive to insure.
How to Fix It:
Drive responsibly and legally at all times. Clean driving records often lead to better premiums and access to loyalty rewards offered by providers like Discovery Insure and MiWay.
2. Insuring a Vehicle That’s Expensive to Cover
Many South African drivers make the mistake of choosing a car they love, without considering its impact on insurance premiums. High-performance cars, luxury vehicles, and newer models often carry higher risks for insurers.
Why It Costs More:
- High repair and replacement costs
- Greater theft risk (especially in urban areas)
- Performance capabilities linked to more accident claims
Examples of Costly-to-Insure Models:
- VW Golf GTI
- Toyota Fortuner
- Mercedes-Benz C-Class
- Ford Ranger Wildtrak
Better Alternatives:
If budget is a concern, consider models with strong safety ratings and affordable parts like the Toyota Vitz, Suzuki Swift, or Hyundai i20.
3. Parking or Living in a High-Risk Area
South Africa’s crime stats vary significantly between provinces and neighbourhoods — and insurers factor this into your quote. If your car is regularly parked in an area known for hijackings, break-ins, or high accident rates, you’re likely to pay more.
High-Risk Examples:
- Unsecured street parking
- High-crime suburbs in cities like Johannesburg, Pretoria, or Durban
- Regions with poor road conditions or high accident rates
Smart Moves That Can Help:
- Install a reputable tracking system (e.g., Tracker, Cartrack)
- Use a secure garage
- Install immobilisers and alarm systems
- Consider night-only or location-based cover options from newer insurers
4. Withholding Information or Providing Inaccurate Details
Honesty is non-negotiable in the insurance world. Failing to disclose past accidents, using a false address, or hiding who the main driver is may lead to declined claims — or result in a significantly increased premium later on.
Common Omissions That Backfire:
- Not listing younger or inexperienced drivers
- Giving a work address instead of your home one
- Downplaying how often you drive
- Hiding previous insurance cancellations or claims
Why This Matters:
Insurers use all of this information to assess risk. If your data doesn’t match reality, your cover becomes less effective — and more expensive in the long term.
Solution:
Be transparent from the start. It’s better to get an accurate quote and know what’s covered than to risk paying more later — or worse, having a claim denied.
5. Not Comparing Quotes or Adjusting Your Cover Regularly
South African drivers often stick with the same insurer for years without rechecking what’s available on the market. Others choose the cheapest quote without understanding the fine print. Both approaches can cost you more over time.
The Issue:
- You might be overpaying for outdated policies
- You may have unnecessary add-ons (e.g. hail cover in low-risk areas)
- You could miss out on loyalty bonuses or no-claim rewards
What to Do Instead:
Use platforms like Hippo.co.za to compare quotes from major insurers. Evaluate:
- Monthly premium
- Excess amount
- What’s actually covered
- Optional extras like roadside assistance or key replacement
Also, review your policy annually or whenever your circumstances change — like moving to a new area, buying a new car, or changing your daily driving routine.
Bonus Tip: Choose the Right Insurance Type for Your Needs
There are three major insurance types in SA — and choosing the wrong one can either cost you more than necessary or leave you underinsured:
- Comprehensive Insurance:
Covers damage to your own vehicle and third-party damage. It’s the most expensive but offers full protection — ideal for newer cars or those with finance agreements. - Third-Party, Fire and Theft:
Covers third-party liability plus fire and theft of your car. It’s a middle-ground option for older but still valuable vehicles. - Third-Party Only:
Covers only damage to other vehicles or property. It’s the cheapest but leaves you exposed in an accident.
Pro Tip:
If your car’s value is low and paid off, third-party or fire & theft cover may be sufficient — saving you a significant monthly sum.
Final Thoughts: Prevention Is Cheaper Than Correction
Rising premiums aren’t always the fault of insurers. Often, drivers can take simple steps to reduce risk and lower their monthly costs. Clean up your driving record, secure your vehicle, choose an appropriate car, and never skip the fine print.
By avoiding these five costly mistakes, you not only save money — you gain the peace of mind that your cover is actually working for you, not against you.
