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Wednesday / 22 May 2024
HomeFeaturesAverage cost of keeping a car on the road in South Africa

Average cost of keeping a car on the road in South Africa

For most South Africans, it costs 39.41% more in 2022 to keep a car on the road than it did in 2017.

In terms of rands and cents, it now costs an average of R9,356.80 per month to keep a car on the road compared to R6,711.24 a mere five years ago, according to King Price Insurance.

These amounts include finance instalments, fuel, insurance, and running costs, many of which have increased substantially over this period.

Considering data from BankservAfrica shows that the average take-home pay in the country currently sits at R14,600, this means many motorists are paying over 64% of their income towards their vehicles.

As such, they are undoubtedly looking at where they can cut costs, with car insurance being one of the first targets for most.

While it’s not advisable to cancel your car insurance altogether, there are ways you can minimise your monthly insurance spend while still maximizing the cover for your budget.

Cutting down car insurance costs

King Price has shared a few tips on what you can do to keep your monthly car insurance premium down.

  • Bundle policies – Insuring two or more cars, and if possible your building and home contents, at the same insurer could lower monthly premiums.
  • Choosing a higher excess – A higher excess, the amount payable by the insured party when claiming, will result in a lower monthly premium, and vice versa
  • Lower risks – Reduce risks wherever possible, like parking inside overnight rather than on the pavement, and inform your insurer thereof so that your premium can be adjusted accordingly

You can also talk to your insurer if you are no longer able to afford your monthly instalments, and it will assist you in finding a plan that’s suitable for your budget rather than removing your cover completely.

More relief incoming

More relief may be on the horizon as drivers can expect a drop in fuel prices in September, said the Automobile Association.

At mid-August, domestic fuel price data pointed to potential reductions in fuel prices of R2.60/l for Petrol 95, R2.45/l for Petrol 93, and R2.30/l for all grades of Diesel in September.

This is mainly a result of the strengthening rand and lower international oil prices, which could change before the end of the month.

However, even if fuel prices go down by the maximum expected amounts, many South Africans will still be paying upwards of R22 per litre of fuel, over 25% more than in September 2021.

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