What the average person pays for car insurance in South Africa

South Africans are spending up to R1,382 per month on average for car insurance, depending on where they live

This is according to data from Hippo, which catalogued the average rate that individuals are paying for car insurance in each of South Africa’s nine provinces.

What you’re paying

Car insurance premiums are calculated based on a range of factors, from the value of a person’s car to the area they live in, as companies use this data to determine a client’s risk factor.

While different insurers all have their own methods to calculate an individual’s premiums, most companies will provide a similar figure based on the aforementioned criteria, which Hippo used to compile the average premiums for motorists in every province.

Hippo is an insurance comparison platform that has access to data from several insurance groups in South Africa, including 1st for Women, Auto & General, Budget, Dial Direct, Iwyze, King Price, Old Mutual, Pineapple, and Virseker.

The following table shows the aggregated rates that these insurers charge for motorists in South Africa, based on their location:

Interestingly, two of the largest provinces – Gauteng and the Western Cape – are on opposite sides of the spectrum, and Limpopo has the highest rates overall.

Hippo notes that the northern, more urban parts of the country tend to have higher premiums on average, but that the Western Cape is an outlier in this regard.

However, it also mentions that crime, traffic density, road conditions, and even weather can affect a person’s coverage.

Provinces with higher crime levels will naturally experience higher premiums owing to the added risk factor, but traffic density is also important, as it means there are more cars on the road, increasing the likelihood of an accident.

Provinces with better-maintained roads tend to see fewer accidents and damage-related crimes, which can lower insurance premiums, while regions prone to extreme weather will be charged more due to the chance of damage from things like hailstorms and flooding.

Insurance companies also consider areas that have better access to repair services, as it can increase the cost on their end to have a car taken in for a lengthy restoration, which they pass on to the consumer through higher monthly fees.

While Gauteng has the highest vehicle crime rates and traffic density in the country, Limpopo has more expensive premiums because of risk factors associated with the province.

Much of its road network is poorly maintained, and the R71 to Mankweng is statistically one of the most dangerous roads in the country, as it is a busy route used by trucks, taxis, and private vehicles that typically sees multiple fatal accidents per year.

The province’s rural areas have limited access to repair shops, and hijackings and other vehicle crime are very high in the province on a per capita basis, even if Gauteng’s figures are worse overall.