South Africa’s favourite bakkie, the Toyota Hilux, holds the unwanted title of the country’s most stolen vehicle as well, leading to higher average insurance premiums.
A list compiled by MoneyToday shows that the most stolen cars in South Africa are its most popular sellers, due to a massive black market demand for their spare parts.
With the Hilux regularly ranking as the country’s top-seller, it is easy to see why it is targeted so frequently, with 8,742 models stolen last year.
MoneyToday also reported that there is only a 34% chance of recovering a stolen Hilux, adding to its risk profile even further.
When taking out insurance on a vehicle, both the driver’s profile as well as the vehicle’s is assessed to gauge the risks associated with insuring the vehicle.
Some insurers may expect drivers to fit high-risk vehicles with safety devices before even considering insuring them, including tracking devices and anti-theft devices.
Vehicles that find themselves on the list of regularly stolen vehicles may attract higher premiums of up to 15 or 30% compared to other models, as well as higher excess payments for stolen-vehicle claims.
According to Nedbank, there are common beliefs about how insurance premiums are calculated, yet most of them are wrong.
“Different drivers will pay different insurance premiums, even those driving the same model car, as insurers calculate premiums according to each client’s individual risk profile,” the bank explains.
One myth Nedbank dispelled is that vehicle colour has an effect on premiums. It said that insurers don’t care much about colour; however, the type of paint used and the finish on the vehicle may be relevant.
Insurers have a preference for standard manufacturer colours that are easy to source in case an accident occurs, and the vehicle needs repainting, meaning unusual colours or metallic effects could invite higher premiums.
Keep this in mind
What insurers look at is the applicant’s credit profile and history of credit handling, and whether accounts are paid in full and on time, which would lead to a good credit score and lower premiums.
A driver risk assessment is then done to determine what premium to charge, based on age, driving experience, and location.
Where the vehicle will be parked, whether that is in a garage or on the street, prior accidents, and insurance claims history all add to the driver or applicant’s risk profile.
Most notably, especially when it comes to the Hilux, Nedbank notes models that are more expensive, in high demand, or prone to theft often attract a higher premium, as they might be more expensive to repair or replace.
The Toyota Hilux represents every one of these factors, meaning its premiums are considerably higher than the average.
To gauge what drivers can expect to pay, TopAuto compared the monthly premiums for comprehensive cover on a Toyota Hilux in Gauteng, the Western Cape, and the Northern Cape.
In Gauteng, premiums range from R1,634 per month all the way up to R4,162, with excess payments on claims ranging from R4,000 to R9,500.
In the Western Cape, an identical driver profile returned results ranging from R898 per month to R1,820, with excess payments between R4,000 and R12,450.
A Hilux driver in the Northern Cape can expect monthly payments of between R995 and R2,772, with excess payments ranging from R4,000 to R12,200.
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