• Posted on Sep 2, 2020

Car insurance for new drivers does not have to be expensive!

Whether you’re finishing school, off to university, or starting your brand new career, if you’re driving a car, it needs to be insured.

Having reliable car insurance

for new drivers in South Africa

is crucial.

This is because new drivers don’t have an established driving history and are statistically more likely to get into car accidents.

If you are new on the roads, you are a higher risk for car insurance companies and, therefore, may have to pay a little more for cover. Luckily, there are top insurance companies that are able to provide reliable and affordable cover for new drivers.

Bear in mind, just because an insurer offers cheap car insurance for new drivers, it does not mean that it is the right cover for you. You need to make 100% sure that you choose a reliable company to ensure that if you damage your car - or someone else’s - you won’t have to fork out money you don’t have to pay for damages.

We’ve created this article to help you choose the best insurance for you. We’ll take you through what you need to know, including:

  • Why do younger drivers usually pay more for car insurance?
  • What other factors that influence car insurance premiums?
  • What types of car insurance options are available?
  • How to save money on car insurance

Why do younger drivers usually pay more for car insurance?

Young drivers are often considered to be a higher risk for insurers as they have less driving experience. So, if you’re between the ages of 18 and 25, you may find that car insurance quotes are a little more pricey.

This seems unfair, doesn’t it? As a young driver, you probably don’t have lots of money coming in, especially if you’re still studying or just starting off your career. Luckily, there are ways to cut down your insurance premiums, such as opting for a higher excess or a cheaper insurance option.

What other factors that influence car insurance premiums?

  1. Car: The type of car you drive affects your premiums. Usually, the more expensive your car is, the higher your premium will be as it would be more expensive for the insurer to repair or replace your car if anything were to happen. Also, cars that are more likely to be stolen will be more expensive to insure. You can check out the 10 most stolen cars in South Africa in 2019 here.
  2. Demographics: Age, gender, marital status, area of residence and your financial background impact your premiums.
  3. Security measures: The more security measures you put in place for your car, the lower your premiums will be. You can install a tracking device or alarm system to lower premiums. Where your car is parked overnight also has an impact on your premiums as different areas have higher or lower risk profiles.

What types of car insurance options are available?

Comprehensive car insurance

Comprehensive cover is the best type of cover you can get. You get the full package, including cover for loss, theft and damage to your car - and, if needed, third party damages you’re responsible for.

If you choose a reputable car insurance company, you can rest assured that the following will be covered:

  • Accident
  • Theft & Hijacking
  • Vandalism
  • Roadside assistance
  • Towing and storage
  • Legal liability
  • Dents and scratches
  • Fire, explosion or earthquake
  • Weather damage
  • Third-party claims
  • Riot damage

Here’s what’s not covered:

  • Driving after having alcohol
  • Selling your car
  • Unroadworthy car
  • Leaving the scene of an accident
  • Racing
  • Intentional loss or damage
  • Your car is used without your consent

So, you’re pretty sorted with comprehensive cover if you just follow the rules.

Third-party car insurance

Can’t afford comprehensive cover? Well, third-party car insurance may be the right option for you. It’s the cheapest option available and offers the least coverage. But, we believe that any cover is better than no cover.

Third-party car insurance covers you for accidental damage that you cause to another party. This means that if you cause an accident, we’ll cover the damage of a third party, but not your car. This option can save you from potential debt.

You should consider this option if you can’t afford any other cover, you have an older, low-value car and you don’t drive your car often.

Third-party, fire and theft insurance

If you have third-party cover, you can add fire and theft insurance. This will ensure you’re covered for:

Damage caused by attempted theft
Damage caused by a fire, an explosion or lightning

Pay per k

This may be a fantastic option for you. Why should you pay a high premium if you don’t drive that far?

Basically, with pay per k, your monthly premium depends on your monthly mileage. So the less you drive, the less you pay.

Learn more about pay per k

car insurance for new drivers infographic

How to save money on car insurance

  • Do your research. Compare various insurance companies to find the one that best suits your needs and budget.
  • Register your car under your own name. You may think that insuring your car under your parent’s name may be cheaper, but the sooner you build an insurance profile, the sooner you will be able to get lower premiums.
  • Don’t opt for no insurance. If comprehensive cover is too expensive, at least take out third party insurance so that you’re covered for damages caused to other vehicles. Once you can afford better insurance, you can upgrade.
  • Consider opting for a higher excess. This way, you will pay lower premiums.
  • Keep your car safe. Don’t park in unsafe locations and increase your car security by installing a tracker.
  • Opt for pay per k if you’re not driving long distances. Pay per k allows you to pay lower premiums, yet still have the benefit of comprehensive cover.
  • Don’t get add-ons, like spoilers, expensive sound systems and boot spoilers. These types of items may attract thieves and therefore increase your premiums.
  • Opt for a simpler car. If your car has a lower speed capability, insurers may charge lower premiums.

Get an affordable insurance quote now

You don’t have to overpay for car insurance just because you’re a new driver.

We’d love to help you choose the best car insurance for you. Fill in our contact form and we’ll contact you as soon as possible and provide you with an obligation-free quote.