A recent report has revealed that nearly all (99%) of South Africans say they’ve changed their shopping habits in light of the cost of living hikes. 

Almost half (44%) feel they’re in a worse financial position this year compared to 2023. 

With what feels like all our money going to food and living costs, we’re all looking at places to shave down our budget. 

Car insurance could be one of them if you know how. Comparing quotes is a smart way to ensure you’re getting the right cover at the best price.  

Here’s how you do it: 

Understand Your Insurance Needs 

Before you start comparing quotes, consider what level of cover you’re looking for. There are three different types of car insurance in South Africa. Understanding what they are will help you decide which one to go for.  

• Third-Party Insurance: This is the most basic and affordable option. It covers damage to other people’s property or vehicles in an accident where you’re at fault, but it doesn’t cover your own car. 
• Third-Party, Fire, and Theft: This policy covers everything third-party insurance does, with the added protection of covering your vehicle in case of theft or fire damage. 
• Comprehensive Insurance: This is the most complete cover, providing protection not only for other people’s property but also for your own car, even in non-collision situations like extreme weather, vandalism, or accidents where no one else is involved. 

If you have an older, less expensive car, you may be able to opt for third-party of third-party, fire and theft cover because repairing or replacing parts on your car will be less expensive. If you have a newer, more expensive car, you’ll want to opt for comprehensive car coverage. 

Gather Multiple Quotes 

Insurance prices can differ across providers, even for the same level of cover. Thankfully, in South Africa, there are several ways to compare quotes: 

• Use Online Comparison Tools: Websites that compare car insurance quotes make this process easy. You enter your details once, and they’ll provide quotes from different insurance providers. Some popular comparison websites in South Africa include Hippo.co.za. 
• Contact Insurers Directly: If you prefer a more personal approach, you can contact insurers directly for quotes. Many insurance companies have easy-to-use online forms or allow you to call their customer service for a customised quote. 
• Speak to an Insurance Broker: Brokers can help you find the best deal by doing the comparison for you. They have access to a wide range of insurers and can often negotiate better rates on your behalf. 

Compare More Than Just the Price 

While it’s tempting to go for the cheapest quote, there’s much more to consider than just price. Make sure you compare the following factors to ensure you’re getting good value: 

• Excess Amount: This is the amount you’ll need to pay out of pocket if you make a claim. Some policies offer low premiums but come with a high excess. Always check if the excess amount is reasonable for you. 
• Coverage Limits: What does the policy cover? Is it enough to protect you in the event of an accident, theft, or weather event? Cheaper policies may have lower coverage limits, which could leave you financially exposed. 
• Add-Ons and Optional Extras: Some insurers offer extras like roadside assistance, car hire, or windscreen cover. These can be useful, but they also add to the cost. Check what’s included in each quote and decide if the extras are worth it for your situation. 
• Exclusions: All policies have exclusions—things they won’t cover.  Go through the fine print and understand what’s excluded. For example, some policies might not cover you if your car is stolen due to negligence, like leaving your keys in the ignition. 

Look for Discounts and Special Offers 

The insurance landscape is a competitive one, so insurers often have discounts and deals to make their policies more attractive. Look out for the below, and you could benefit: 

• No-Claims Bonus: If you haven’t made any claims in the past, some insurers will reward you with lower premiums.  
• Low Mileage Discount: If you don’t drive often, you may qualify for a low mileage discount.  
• Bundling Policies: If you already have other insurance policies (like home or life insurance), check if your insurer offers a discount for bundling multiple policies together. 

Shaving down a few hundred rand on your car insurance every month will give you that extra bit of budget wriggle room. After all, every bit counts! There’s no need to pay exorbitant amounts on car insurance when you can pay less without compromising on coverage.