Most drivers don’t lose money on car insurance because of one big decision. They lose it slowly, through small mistakes that seem harmless at the time but become expensive over years of premiums, claims, and uncovered losses.

These mistakes are common, avoidable, and often repeated simply because no one explains their real impact. Understanding them can save far more money than chasing the lowest premium.

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What Are The Most Expensive Car Insurance Mistakes Drivers Make?

The most costly car insurance mistakes include choosing cover based only on price, setting an unaffordable excess, failing to update details, misunderstanding exclusions, and carrying cover that no longer matches the car’s value.

Choosing Car Insurance Based Only On Price

Choosing the cheapest option often feels like smart financial behaviour.

The problem is that price-focused decisions usually reduce protection where it matters most. Higher excesses, limited cover, and stricter exclusions can turn a claim into a costly surprise. Over time, drivers either pay more out of pocket or avoid claiming altogether.

Cheap cover is only a saving if it still protects you when something goes wrong.

Setting An Excess You Can’t Comfortably Afford

A high excess lowers monthly car insurance premiums, but it increases pressure at claim time.

South African drivers often underestimate how stressful it is to find a large sum of money immediately after an accident or theft. When the excess feels unaffordable, claims are delayed, repairs are skipped, or financial strain follows.

An excess should be manageable in real life and not just acceptable on paper.

Keeping Full Cover When The Car’s Value Has Dropped

As cars age and depreciate, their insurance needs change.

Many drivers continue paying full cover long after the premiums no longer match the car’s value. In these cases, years of premiums can exceed what the car is realistically worth.

Failing to review your car insurance coverage as your car depreciates is one of the most common ways to overpay on insurance.

Forgetting To Update Personal Or Vehicle Details

Insurance is priced on risk, more specifically ‘risk profile’, and risk changes over time.

Moving to a new area, changing how you use your car, or improving security can all affect premiums. When details aren’t updated, drivers either overpay or risk complications during claims. Minor updates can make a meaningful difference.

Misunderstanding What Car Insurance Does Not Cover

Another costly insurance mistake comes from assumptions rather than decisions. Understanding exclusions is just as important as understanding benefits.

Drivers who don’t understand these limits are often disappointed when claims are partially paid or flat-out rejected.

And what are these exclusions? Wear and tear, mechanical failure, and certain types of damage are commonly excluded in a car insurance policy.

Cancelling Cover Without Considering Long-Term Impact

Cancelling insurance can feel like an easy saving, but reapplying later may come with higher costs or reduced options.

Gaps in cover can trigger reassessment, affect premiums, or limit flexibility. The short-term saving is sometimes offset by long-term expense.

Continuity often works in your favour because it shows insurers that you’re responsible and can manage your financial obligations.

Not Reviewing Car Insurance Regularly

Life changes, but insurance usually doesn’t.

A job change, different driving habits, improved savings, or a new car can all shift what coverage makes sense. When policies remain unchanged for years, they often stop reflecting real risk.

That’s why regular reviews matter: they prevent silent overpayments that drain your bank account.

How To Avoid These Costly Mistakes

Avoiding these mistakes doesn’t require expert knowledge. It requires periodic attention.

Here’s how to avoid costly insurance mistakes:

• Review your cover when your circumstances change. 
• Choose an excess you can afford. 
• Match cover to your car’s value. 
• Understand exclusions before you need to claim.

Small, informed adjustments make a significant financial difference over time.

So, Which Mistakes Cost Drivers The Most Money?

The most expensive mistakes are habitual and often overlooked.

Paying for cover you no longer need, choosing price over protection, and ignoring small details quietly drain money year after year.

Have questions? We have all the answers!

What are the most expensive car insurance mistakes drivers make?

The most expensive car insurance mistakes are choosing cover based only on price, setting an unaffordable excess, not updating personal or vehicle details, misunderstanding exclusions, and keeping cover that no longer matches the car’s value. These mistakes increase premiums over time or leave you paying more out of pocket when you claim.

Why is choosing the cheapest car insurance often a costly mistake?

The cheapest car insurance can become expensive because low premiums often come with higher excesses, stricter exclusions, and fewer claim-time benefits. The real cost shows up when something goes wrong, and the policy doesn’t protect you the way you expected.

How do I know if my car insurance excess is too high?

Your excess is too high if you wouldn’t be able to pay it quickly without financial strain after an accident, theft, or hijacking. Saving monthly isn’t worth it if the excess makes you delay repairs, avoid claiming, or go into debt.

What happens if I don’t update my details on my car insurance policy?

If you don’t update your details, you can end up overpaying or facing complications during a claim if your risk profile doesn’t match what’s on your policy. Changes like moving areas, changing how you use the car, adding a regular driver, or improving security should be kept up to date.

What are common car insurance exclusions that cause claims to be rejected?

Common exclusions include wear and tear, mechanical failure, and damage that isn’t linked to a specific insured event. Many claim surprises happen when drivers assume “comprehensive” means “covers everything,” so it’s important to check exclusions before you need to claim.

Final Takeaway

To make a long story short, the biggest car insurance costs come from decisions that are never revisited.

Taking time to review your cover can prevent years of unnecessary expense and frustration. Pineapple’s car insurance makes it easier to reassess your car insurance based on your car’s current value, how you use it, and what actually matters to you now. This can help you avoid paying for mistakes you didn’t realise you were making.

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Pineapple (FSP 48650) is underwritten by Old Mutual Alternative Risk Transfer Insure Limited, a licensed Non-Life Insurer and authorised FSP. T&Cs apply.

Please Note: The information provided above is for informational purposes only; you should not construe any such information as legal or financial advice.