How much you really pay to protect your car against theft and hijacking in South Africa

A very small portion of your insurance premium actually goes towards protecting your ride against theft and hijacking.

This was revealed when a Gauteng motorist lost protection against theft and hijacking when they failed to comply with new requirements put forth by their insurer.

The individual owned a 2013 Toyota Fortuner which their insurer deemed to be at high risk for theft and hijacking.

While the original insurance policy only required the owner to install one tracking device in their vehicle, the insurer later amended the rules to require two tracking devices.

It informed the client via email and text message of the policy change and gave them sufficient time to comply, around three months.

They also warned that should the owner fail to comply, they’ll lose protection against theft and hijacking.

The emails and text messages allegedly went unheeded, and the owner never provided proof that they did, in fact, fit their car with another tracker.

The insurer consequently removed cover for theft and hijacking and revised the client’s premiums accordingly.

One would expect that your insurance premium will fall by quite the amount if such an important element is removed.

However, this particular motorist’s premium only dropped from R2,347 to R2,301, a discount of a mere R46.

In justifying the miniscule reduction, the insurer told consumer advocate Wendy Knowler that theft and hijacking cover is but one of several elements included in the typical car insurance premium.

“While the removal of cover for theft and hijacking is indeed significant in terms of risk, its impact on the premium may appear modest,” said the insurer, according to Knowler.

“This is because a vehicle insurance premium comprises many components [including] accident damage, third-party liability, hail and weather, car hire options, and more, each carrying its own weighting.”

It said the value of the theft and hijacking component for this particular vehicle, as well as its risk profile, were “actuarily determined” and thus represented accordingly within the premium.

What the average South African pays for car insurance

The average South African pays anywhere from R980 to R1,382 per month for car insurance, depending on where they reside.

To find this range, insurance comparison tool Hippo compiled the average premiums of its insurance partners for comprehensive cover per province.

It determined that the Western Cape is the cheapest region to protect a vehicle, with the average motorist paying a monthly due of R980.

Meanwhile, not Gauteng, but Limpopo is the most expensive area with a monthly rate of R1,382.

Generally speaking, though, the data suggests that car insurance premiums are higher in the northern and more urbanised regions of the country, with the Western Cape being the sole exception to this rule.

The average monthly premiums per province, as provided by Hippo, are as follows:

Apart from the make and model of the vehicle and your driving history, Hippo explains that insurance costs are influenced by a variety of factors.

These include crime rates, traffic density, road conditions, weather patterns, local driving culture, and access to repair facilities.

In provinces with higher rates of car theft or break-ins, insurers see more risk and, as a result, set higher premiums.

Urban areas like Gauteng have more vehicles on the road, which means a greater likelihood of accidents.

“More traffic often leads to higher premiums since there’s an increased chance of claims,” said Hippo.

Additionally, provinces with well-maintained roads may see fewer accidents and damage-related claims, thereby lowering premiums.

In contrast, regions where roads are in poorer condition usually cause more wear and tear or even accidents, which can push premiums up.

In a similar vein, areas prone to extreme weather like hailstorms and flooding can lead to more car damage, affecting premiums.

Regions known for poor driving habits or high levels of traffic violations may lead to higher insurance prices, too, and vice versa.

Lastly, provinces with better access to repair services and parts may see lower premiums.

“If repairs are costly or limited, insurers factor that into premiums since claim costs could be higher,” said Hippo.