- Rising Costs: The cost of living in South Africa is increasing, making it crucial to evaluate your car insurance options carefully.
- Budgeting for Insurance: Consider how car insurance fits into your overall budget. Balancing affordability with sufficient coverage is key to staying protected without overstretching your finances.
- Types of Coverage: Understand the difference between comprehensive and third-party insurance—each has its pros and cons depending on your vehicle’s value and your financial situation.
- Discount Opportunities: Look for ways to lower your premium, such as bundling policies, maintaining a clean driving record, or installing safety features in your car.
- Regular Reviews: Periodically review your insurance policy to ensure it still meets your needs as your financial situation or car's value changes.
The weight of financial responsibility is threatening to crush the average South African. Living costs rise while salaries remain fixed, leaving most people with less disposable income to cover expenses like groceries, transportation and car insurance.
Car Price Inflation and Affordability
TransUnion’s 2023 Vehicle Pricing Index (VPI) revealed that prices for new and used vehicles in South Africa increased, on average, by 6.3% and 6.4% in Q4 of 2023.
This surge is due to global inflation, rising import costs, a weakening exchange rate, interest rates and supply chain disruptions.
Sizwe Ndlovu, the Chief Technology Officer (CTO) at prominent South African digital insurance provider Pineapple, commented, “When vehicle prices [rise], insurance premiums do too. This can make it harder for people to afford a new car, even if they can technically afford the monthly payments.”
The Double-Edged Sword: Rising Car Costs and Insurance
StatsSA found that motor trade sales decreased by 10.4% year-on-year. Vehicle prices, however, did the opposite, as used cars older than three years retailed for about 14.6% to 16.7% more than they did before.
This creates a financial squeeze for motorists, resulting in a double-edged sword:
- Skimp on insurance and risk financial ruin in case of an accident or
- Stretch your budget even further on essential car protection.
The Risky Proposition: Sacrificing Coverage vs The Importance of Car Insurance
While opting for cheaper third-party insurance might seem appealing, it leaves your car vulnerable in case of damage, theft, or natural disasters.
More expensive comprehensive insurance provides peace of mind, knowing you're financially protected in various situations.
Speaking of comprehensive car insurance and not being able to afford cover, we requested a quote* from several insurers** for a new 2018 SUZUKI JIMNY 1.5 GL, valued at R399,900, on behalf of a 34-year-old woman.
Here are the results:
So, if Pineapple wasn't already on your shopping list, or you weren’t planning on getting a quote with us, may the above be enough motivation for you to give us a go (wink).
Finding the Right Fit: Resources for Budget-Conscious Drivers
Money-minded motorists seeking cheap insurance solutions can begin their journey on websites like Hippo, which allow you to compare insurance quotes from South Africa’s leading insurers.
You can also explore other car insurance options, like those outlined in Pineapple’s informative blog post: Discovery car insurance alternatives.
Otherwise, consider using customer rating platforms like Hellopeter or Google Reviews. They offer great insight into how clients rate South Africa’s insurance providers. By sharing their experiences, these consumers give you a better idea of the kind of insurance products and service you can expect from your future insurer.
While we’re on the topic of highly-rated insurance providers in SA, do you know who currently holds the top spot?
Excuse the shameless self-plug (can’t shame the shameless, right?), but a certain fruity insurance provider named Pineapple is the top-rated car insurer, according to Google reviews.
And no, we did not have anything to do with the outcome… apart from providing excellent customer service, affordable comprehensive cover and client-centric insurance benefits.
Besides, Google’s review platform requires reviewers to be verified and allows them to submit only one review per business and per email address. This helps reduce a business’s ability to flood their company’s Google listing with fake positive reviews in an attempt to inflate their average rating.
So, there’s that.
Anyway, where were we? Oh yeah.
These online resources offer a wealth of information and options, ensuring you find the best price for your budget!
Conclusion
Despite the ever-increasing cost of living, one thing you probably shouldn’t compromise on is car insurance. With enough research, you can find affordable coverage that fits your budget and ensures you're protected on the road.
And in case our table with comparative premiums or our humble bragging was too subtle, we’d love to be your insurer of choice.
Pick Pineapple for car insurance that isn’t just transactional but transformative. We want to change the way you think about and interact with your insurance policy.
How?
By putting you in the driver’s seat towards a destination of financial freedom.
Our premiums start from as little as R19-ish a day–you read that right, NINETEEN–and we reward you with up to 30% of your premiums back as a cash refund.
For a quick quote, visit Pineapple.co.za.
If you would like to get a quote but still have a few lingering questions about cars, cost, car insurance or Pineapple and would like a call, let us know—we’d love to chat!
Read more:
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.
Team Pineapple
Team Pineapple comprises our company’s top talents, who are dedicated to creating clear, high-quality content on essential vehicle insurance topics. This diverse group, including actuaries, accountants, data scientists, and insurance professionals across South Africa, collaborates to produce enlightening and empowering articles.
Each piece is thoroughly researched, factually accurate, and rigorously reviewed to ensure quality.
*We say they’re the finest because we want them to keep writing for us!
