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Residential Area

As with household insurance, your premium will be calculated based on the area you live in. Based on statistics compiled by insurance companies over many years, certain areas are at higher risk for theft and/or hijacking of vehicles.

Your Vehicle

If you drive a high performance vehicle, you’re a higher risk for the insurer and will end up paying more or be refused insurance cover due to the risk. The cost and availability of parts for your car will also be reflected in your insurance quote. You pay higher premiums on imported cars and certain makes and/or models.

Your Age

The age of the registered owner and/or driver play a huge role when it comes to insurance quotes. Younger drivers tend to be involved in more accidents than older drivers. They have less experience driving on South African roads, tend to be less responsible drivers etc.

Type of Cover

The cover you select for your vehicle will also have an influence on your insurance quote. Comprehensive cover being the most expensive, then 3rd Party, Fire and Theft, and lastly 3rd Party only.

Use of your Car

If you use the vehicle mainly for private purposes, you’ll pay less for insurance compared to someone using his/her vehicle for business purposes.

No Claim Bonus (Claim-free Years)

Your insurance history will also have an influence on your insurance quote. First-time insurers pay more for insurance cover compared to someone with

proof of insurance. The discount is calculated in accordance with the claim-free years you’ve been insured.

Voluntary Excess

With most insurance companies, you can increase your excess in order to reduce your monthly premium. A voluntary excess refers to an additional amount that you’re willing to pay when a claim arise. This amount will be added to the basic excess of the policy when you submit a claim. A higher voluntary excess will result in a lower insurance premium.

Security Measures

The type of vehicle and residential area will determine what security measures are required for your car. If your security exceed the minimum requirement of the insurance company, you could be eligible for a discount. In general, insurance companies only give discount for immobilizers (VESA or VSS approved), gear locks (VESA approved) and tracking devices.


If you have any non-standard extras on your car, you will pay an additional premium for the extras and is generally reflected on your quote. Extras could be air-conditioning, sunroof, mag wheels, car radio/cd shuttle, leather seats, canopy etc.

Additional Cover

Your insurance quote would generally be based on the basic cover of the insurance company. Additional cover can also be obtained (at a premium of course!). Examples would be car hire, top-up cover (credit shortfall), roadside assistance, waiver of excess etc.