How Much Does Car Insurance Cost?

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As of May 2025, only 30-40% of vehicles in South Africa are insured. 

This means 60-70% of SA’s drivers are one accident or car write-off away from losing their car. The thought of hailing taxis, requesting Ubers or walking to work should be enough to encourage anyone to insure their vehicle. 

And yet, Mzansi’s motorists remain uninsured. Most drivers cite affordability as the thing standing between them and comprehensive car insurance.

So, Pineapple decided to investigate. 

Comprehensive car insurance in South Africa can cost between R200 and R2000, depending on your risk profile: what you drive, where you stay, and how you’re covered. But, there’s more to the story. 

Let’s dive deeper by looking at the average price of car insurance and what affects your premium—plus a 90-second quote tool if you want your personalised policy, fast.

TL;DR – Our version of “I’m not reading all that, *SparkNotes pls.”

*Prices may vary by coverage type, age, region and risk profile.

Want your exact car insurance premium? Get a comprehensive car insurance quote in just 90 seconds.

Factors Influencing Car Insurance Costs

The three main factors that can influence your monthly car insurance premiums are: 1) vehicle details, 2) driver details, and 3) insurance coverage type. Or, to put ot simply, your risk profile.

A driver’s risk profile is a measure of how likely a driver is to get into an accident and make a claim from their insurance provider. 

This next section is dry, but super important, so try not to fall asleep: Insurers use your risk profile to assess your risk; if you pose a high risk, you’ll either be declined (meaning the insurer won’t provide cover) or your monthly premiums will be expensive. If the risk of insuring you is low, you’ll likely receive favourably low and affordable premiums.

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1. Vehicle Details: How Your Car Impacts Insurance Cost

How your car’s specifics affect the amount you’ll pay in monthly insurance premiums is pretty straightforward (but we work in insurance, so of course we’d say that). 

The more expensive your car (aka the higher its retail value), the higher the potential payout if it’s stolen, damaged, or written off in an accident. This will translate into higher insurance premiums.

Why? 

It’s simple (again, that’s the insurance provider in us talking); at its core, insurance is about transferring risk.

When you pay a premium, the monthly fee for ensuring your insurance policy remains active, your insurance provider agrees to cover specific financial losses outlined in the policy. For example, Pineapple’s car insurance covers your car against fire, theft, hijackings, accidental damage, third-party accidents, weather, and more.

The higher the risk, or potential for financial loss and filing claims, the more your insurer will charge to cover your vehicle.

*Prices may vary by coverage type, age, region and risk profile.

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2. Driver’s Profile: Age, Gender & Experience – What Insurers Look At

Insurance providers also look at your unique driver profile to determine how much you should pay for monthly insurance premiums—sort of like how universities accept or reject an application based on your grades.

Along with your car’s details, several other factors in your personal risk profile can influence your premiums. 

Let’s explain with a little game we call ‘Lower versus Higher’:

• Insurance history. Having an (extensive) insurance history with little to no claims lets insurers know you’re responsible and familiar with insurance = Lower premiums.
• Age. Being under 25 or having had your licence for less than 3 years tells insurers you’re still a novice = Higher premiums.
• Gender. Younger women are less likely to get into an accident than their male counterparts (City Girls up +1000 points) = Lower premiums. But this is an old-fashioned metric, and not as significant as it used to be.
• Driving history. If your name is synonymous with traffic violations, accidents and fines… You already know = Higher premiums.
• Location. Living in a relatively safe neighbourhood (this is South Africa, after all) with low levels of vandalism, natural disasters, and theft may = Lower premiums.

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3. Coverage Options: Comprehensive vs. Third-Party — What’s Right for You?

If you’ve ever stayed on the phone with a car insurance sales agent long enough, you’ve likely been offered a comprehensive car insurance policy.

Comprehensive car insurance protects against various risks, making it the most extensive car insurance policy. Coverage typically includes protection for your car and third-party incidents, theft, fire, weather damage, natural disasters, and other perils specified in your policy documents.

Comprehensive car insurance typically also comes with more added benefits. These not only mean you get more bang for your buck, but your driving experience is much better. 

Take Pineapple’s comprehensive car insurance benefits, for example. From just R589 p/m*, your comprehensive car insurance policy comes with benefits like:

• 24/7 emergency roadside assistance
• Lost or broken key assistance
• SASRIA cover
• Window and windscreen repair
• Emergency accommodation*

Comprehensive car cover is highly recommended if your car is new, expensive, or has a high retail value. Without insurance,  paying out of pocket for an accident or write-off would cost an arm and a leg! 

With insurance, after you’ve paid the excess amount, the insurance provider assumes the responsibility of repairing or replacing your car.

But what about third-party car insurance?

Third-party cover is often best suited for older, paid-off or less expensive vehicles. It’s the most basic car insurance protection on the market, only covering damage and injuries others sustain if you’re at fault. Your own vehicle, however, is not covered in the event of an accident.

Another form of third-party insurance, sometimes called liability cover, is third-party fire and theft. As the name suggests, it provides added protection in case of theft or damage caused by fire. But your car still isn’t covered against single-vehicle incidents or accidents. 

So, which type of car insurance policy is the best option for you? 

*Prices may vary by coverage type, age, region and risk profile.

If you’re comfortable, a.k.a financially capable, with the monetary risk of paying for your own repairs and replacements, third-party insurance is right up your alley. Plus, it’s generally cheaper.

On the other hand, comprehensive vehicle coverage may be right for you if you need more peace of mind, added benefits, and financial protection. 

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Regional Variances in Car Insurance Costs

Just when you thought things couldn’t get more layered, here comes another factor that can influence how much you pay for auto insurance. Even as the writer of this article, I’m a little exhausted, but bear with me—this information could change your life (save you money)!

According to Hippo.co.za, Mzansi’s preferred insurance comparison website, the average car insurance premiums in each of South Africa’s nine provinces are listed below. 

*Based on Hippo Data

The difference in premiums for each province can largely be attributed to crime, traffic density, and road conditions.

Areas with higher crime rates and heavier traffic density typically have a greater likelihood of theft, hijacking, vandalism, or accidents. That’s why residents of populous provinces like Gauteng and KwaZulu-Natal, with notably heavy traffic, tend to pay more monthly premiums.  

Similarly, regions with poorly maintained roads may see increased road accidents and damage, leading to more insurance claims.

Lastly, other regional factors that may affect how much you pay in insurance premiums are:

• Extreme weather conditions, such as heavy rain, hail, or flooding, can cause more car damage, affecting premiums.
• Reckless driving and high levels of traffic violations might affect accident rates, pushing premiums higher.
• Provinces with better access to repair services and parts may see lower premiums.

Understanding Premium Calculations

Now that you know which factors can affect your monthly vehicle insurance premium price, it’s time to understand how insurance providers use them to calculate your insurance premiums. 

Insurers don’t pull your premiums out of a hat, but insurance premiums require some magic. But, instead of magicians or using sleight of hand, the insurance industry relies on actuarial models and data analysis to assess the risk you pose.

Your premium is presented once your risk is assessed successfully and thoroughly. 

But, it doesn’t end there; you have control over how much you’d prefer for your car’s insurance by choosing the excess amount. The excess is the first amount payable by you, as the policyholder, when you make a claim.

The excess is your contribution to the loss before your insurance provider pays the remaining amount.

For example, if your excess is R5,000 and your car sustains R20,000 damage, you’ll pay your insurer R5,000. Your insurance company will then pay the remaining R15,000 to fix your vehicle.

“Okay, but what does excess have to do with how much I’m paying for insurance?” you ask (you didn’t, but let’s pretend).

The relationship between insurance excess and premiums is inverse: the higher your excess, the lower your premium, and vice versa.

• A higher excess will likely result in a lower premium.
• A lower excess will likely result in a higher premium.

Insurance providers reward you with a lower premium because, to them, choosing a higher excess amount means you are assuming more financial responsibility for the economic risk of the claim.

Taking on a larger portion of the financial risk means they’ll pay less for every claim. If policyholders opt for higher excess fees, they might save significantly on many claims.  

Plus, a higher excess can deter policyholders from claiming for minor damages. This, again, means they save by not frequently paying out.

And finally, fewer small claims for the insurance provider to process and pay out means reduced administrative costs and overall payouts. 

What does this do for other policyholders? 

You get a low premium. You get a low premium. Everybody gets a low premium.

Drive less than 300 km in a month? Get blessed with up to 30% cash back. Get your Pineapple quote now.

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Market Trends and Comparison Shopping

According to GlobalData, a leading data and analytics company, South Africa’s general insurance industry is set to grow at a compound annual growth rate (CAGR) of 5.8% in terms of gross written premiums (gwp) from R181.5 billion (USD 9.8 billion) in 2024 to R227.6 billion (USD 11.2 billion) in 2028.

In 2024, the industry saw a 7.7% growth, which was largely supported by increasing vehicle sales, a rising demand for policies covering natural catastrophic events, and growing incidents of cybercrimes.

Car insurance alone, South Africa’s leading line of business, was predicted to account for 42.5% share of the general insurance GWP. 

The South African car insurance market continues to evolve rapidly, with insurtechs continuing to challenge traditional insurance providers with more coverage options, better tech, and smarter pricing.

And as more insurance providers enter the market and pricing becomes increasingly competitive, policyholders have never had a better time to capitalise. 

How? By comparing different policies and coverage offerings.

Not all policies are created equal. Some look cheaper upfront but hit you with hidden excesses, exclusions or slow claims.

Here’s why comparing different insurance policies can benefit you:

1. Coverage differences: Third-party might seem cheaper, but comprehensive coverage often saves more in the long run.
2. Excess traps: A low premium with a high excess can be riskier than a slightly higher premium with full coverage.
3. Customer service: Some insurers take weeks to pay out, while insurance providers like Pineapple aim for lightning-fast claim approval.
4. Digital tools: Apps like Pineapple let you manage your policy, submit claims, and earn rewards all from your phone.

Pineapple uses advanced tech to match your needs with the best quote. Get yours now!

Car Insurance Cost FAQs

• How much is car insurance per month in South Africa?

The average price of car insurance in South Africa is around R1,319. However, this depends on the policy (third-party versus comprehensive coverage), the vehicle’s details and the driver’s risk profile. 

• What’s the cheapest type of car insurance?

Third-party only cover is the cheapest type of car insurance in South Africa. It offers limited protection, covering damage to others or their injuries if you’re at fault, but not to you or your property. Because insurers aren’t liable for damage to your vehicle, the potential payout for a claim is significantly reduced. So, the lower risk means lower monthly car insurance premiums for you.

• Why is my premium so high?

High car insurance premiums are usually linked to your risk profile. A risk profile is an assessment of the level of risk you pose as a policyholder—simply, how dangerous it is for an insurance provider to insure you. Insurers calculate your premiums based on age, driving experience, insurance history, location, vehicle details, etc. So, if you have high premiums, you’re likely seen as a high-risk individual. For lower premiums, you should maintain a clean driving record, avoid claiming for minor damages, or choose a higher excess, if you can afford it.

• How does excess affect my premium?

The higher your excess amount, the lower your monthly car insurance premium, and vice versa. Choosing a higher excess means you’re taking on a larger proportion of the financial risk in case of a claim event. For example, if your excess is R5,000.00 and your car sustains R20,000.00, the insurer has to pay R15,000.00. But if your excess is R10,000.00, then the insurer would only pay R10,000.00. So, insurers ‘reward’ you with lower premiums because the potential payout for a claim is lower.

• What’s the average price for first-time drivers?
  

The average car insurance premium for first-time drivers is about R1,398 to R2,342. Insurers see first-time drivers, especially those under 25, as high-risk due to their limited driving experience and statistical likelihood of an accident. Plus, first-time drivers likely don’t have an insurance history. This makes it difficult for insurers to establish proof of responsible driving, meaning there is no positive data to offset the perceived high risk.

Conclusion

The cost of car insurance in South Africa can range from R110 per month to R2,342. This depends on the type of insurance coverage and various factors that make up your risk profile: your car’s details, age, where you live, driving experience, and insurance history. 

But worry not—you don’t have to be an insurance expert to get a great deal on your premiums (leave that to us—Pineapple, I’m referring to Pineapple)—you just need to be an informed driver.

And now that you know what car insurance typically costs and what affects your monthly premium, the next step is easy.

In just 90 seconds, or less, Pineapple can give you a personalised premium and transparent insurance quote. 

No paperwork, guesswork or confusing insurance jargon, just clear pricing based on your unique profile. Comprehensive cover starts from as little as R589 per month, plus you can get cashback of up to 30% for every month you drive under 300 kilometres.

Curious what you’d pay for comprehensive car insurance? Try Pineapple’s 90‑second quote — no paperwork, just answers.

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

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