If you’re here, checking out our royally amazing insurance blog, then it’ll come as no surprise that we believe car insurance is an essential policy to have. After all, the right level of car insurance can give you financial protection against the costs of theft, hi-jacking, and damage resulting from an incident involving your car, as well as costs you might be liable to third parties for.
But just because car insurance is an expense worth having, doesn’t mean it has to be expensive. When it comes to the price, well, this varies depending on several factors, including the type of cover you choose, the make and model of the car, and the driver’s age and driving record, and a few other details.
Case in point, back in 2022, it was reported that the average monthly insurance cost came to R1,322.13. However, without knowing what type of car was being covered, what type of insurance policy had been selected, who the policyholder was, and who the insurer was, it’s hard to say that this is the kind of money you should expect to pay.
So, what should you be paying? Good question.
Here’s a way to work out how much you should spend on your car insurance policy.
First, work out what type of cover you need
The king has several car insurance options for you to choose from. Some policies are cheaper than others, like our third party insurance. It literally only covers the costs of damage to a third party’s car or property resulting from an incident involving your car. If you prang into a smooth-as-cream Mercedes c-class, the repairs are covered. But not for your own car. That’s why this option is the cheapest and is often best suited for cars that are fully paid off and have been around the block a few times.
On the other end of the extreme is our souped-up comprehensive cover, which comes with all the bells and whistles, including cover for damage to your own car. If you don’t have the cash to stump up for things like hail damage repairs, theft, and repairs to your own car after an accident, then comprehensive is worth it. Better to be safe than sorry.
Importantly, if your car is financed, you may find that you’re required to get comprehensive cover. Just remember, you don’t have to get your insurance from the dealership or the bank.
As you can see, what you need plays a key role in what you can expect to pay.
Secondly, consider your budget
When it comes to working out how much you should personally spend on car insurance, the deciding factor largely hinges on your budget. Depending on what you earn and your other commitments, you could decide that you’re going to spend no more than 10% of your monthly income on car insurance.
If you’re earning R15, 000 (nothing to sneeze at, thank you), then this means that you’re looking at a maximum of R1,500 per month for your insurance.
But let’s say you have a tighter budget and can only spend a maximum of R400 on cover. If this is the case, you might have to choose a lower level of cover, like third party, fire and theft or third party only. Or you might look at taking a higher excess, because changing your excess can affect your premium. A higher excess = a lower premium, while a lower excess = a higher premium. This is a nifty way to bring your monthly premiums down so you can work within the boundaries of your budget.
Thirdly, you need to shop around
The less you have available to spend on car insurance, the more important it is to shop around and compare quotes. Although… It doesn’t matter how much wriggle room you’re playing with, comparing costs is always a good idea. And we love helping our fellow South Africans out with commitment-free quotes. We even help people via WhatsApp to make it that much easier for you to find out what you can expect to pay.
Want to try it out? WhatsApp us on 0860 50 50 50 to try it out. You’ll be delighted by the quote and our royal service.
Lastly, talk to the king
Our goal is to make sure that you have peace of mind, knowing that you’re financially protected if the worst should happen. We also want to make this an affordable experience, which is why we do our best to work with you to find the best solution.
Here’s how we can help you:
- Suggest the most affordable level of cover.
- Offer our multi-car discount, where you could save up to 20% by comprehensively insuring more cars with us.
- Give you the option to change your excess so you can bring your premium down (but also making sure you choose an amount that’s reasonable to pay if you have to claim).
- Let you know that if you take out both home and car insurance with the king, you could possibly get a discount on your premiums.
Ultimately, we understand that as costs go up, up, up. That’s why we’ve made sure that our car insurance solutions can help you maintain your cover and keep your expenses down.
Interested in switching to our simple cheap insurance? WhatsApp us on 0860 50 50 50, or get the ball rolling online by clicking here to get a commitment-free quote.
