If you’re reading this, you already know car insurance is worth having. The right policy gives you financial protection against theft, hijacking, accident damage, and third-party liability without necessarily costing a fortune. The tricky part is working out what “the right amount” actually looks like for your situation. That’s exactly what this guide covers.
Key takeaways
- The type of cover you choose, third party, third party fire and theft, or comprehensive, is the biggest factor in your premium.
- Your budget should determine your excess level: a higher excess means a lower monthly premium.
- If your car is financed, your bank or dealership will almost certainly require comprehensive cover.
- Comparing quotes from multiple insurers is always worthwhile, regardless of your budget.
- King Price offers multi-car and combined home-and-car discounts that can meaningfully reduce what you pay.
Step 1: Work out what type of cover you need
The king has several car insurance options, and each one comes with a different price tag. Understanding what each level covers is the first step to knowing what you should be paying.
- Third party only
- Cover that pays for damage you cause to another person’s vehicle or property in an accident. It does not cover damage to your own car, theft, fire, or hijacking.
Third party only is the most affordable option. It covers the cost of damage to someone else’s car or property when you’re at fault, but nothing happens to your own vehicle. If you reverse into a pristine Mercedes C-Class in a parking lot, the repairs to that Mercedes are covered. Your own car? Not so much. This level of cover works well for older vehicles that are fully paid off and wouldn’t justify a large insurance payout.
Third party, fire and theft sits in the middle. It adds cover for your car being stolen or damaged by fire on top of the third-party liability protection. It’s a sensible middle ground for cars that have some value but where comprehensive cover might stretch the budget.
Comprehensive cover is the full package. It includes everything above, plus cover for damage to your own car from accidents, hail, flooding, and other incidents. If you couldn’t comfortably absorb the cost of repairing or replacing your car out of pocket, comprehensive is the level you want.
One important note: if your car is financed through a bank or dealership, you’ll almost certainly be required to hold comprehensive cover for the duration of the finance agreement. Just remember, you don’t have to take that cover from the dealership or the bank. You’re free to shop around.
| Cover type | What it covers | What it doesn't cover | Best suited for |
|---|---|---|---|
| Third party only | Damage you cause to other people's vehicles or property | Your own car, theft, fire, hail, hijacking | Older cars, fully paid off, lower market value |
| Third party, fire and theft | Third party liability plus theft and fire damage to your car | Accident damage to your own car, hail, flooding | Mid-range cars where full comprehensive isn't cost-effective |
| Comprehensive | All of the above plus damage to your own car from accidents, hail, flooding, and more | Intentional damage, wear and tear, mechanical breakdown | New cars, financed cars, or any car you couldn't afford to replace |
Step 2: Consider your budget
Once you know what level of cover you need, your budget becomes the key variable. A common rule of thumb is to spend no more than 10% of your monthly income on car insurance, though this will vary depending on your other financial commitments.
If you earn R15,000 a month, that 10% guideline puts your ceiling at R1,500 per month. If your budget is tighter, say R400 a month, you may need to consider a lower level of cover or adjust your excess to bring the premium down.
- Excess
- The amount you agree to pay out of your own pocket when you make a claim. A higher excess means a lower monthly premium, and a lower excess means a higher monthly premium.
Adjusting your excess is one of the most effective ways to manage your premium. The relationship works like this:
- Higher excess = lower monthly premium. You take on more financial risk at claim time, but you pay less every month.
- Lower excess = higher monthly premium. You pay more each month, but less if you need to claim.
The key is choosing an excess you could realistically afford to pay if something went wrong. There’s no point in setting a R10,000 excess to save R200 a month if you wouldn’t have R10,000 available when you needed to claim.
That 2022 average gives a useful reference point, but it tells you very little on its own. Without knowing the make and model of the car, the driver’s age and claims history, the cover level selected, and the insurer, that number is almost meaningless for your specific situation. Use it as a rough benchmark, not a target.
Step 3: Shop around and compare quotes
The less budget you have, the more important it is to compare. But honestly, comparing quotes is a good idea regardless of what you can afford. Premiums for identical cover can vary significantly between insurers, and a few minutes of comparison can save you hundreds of rands a month.
Car insurance premiums in South Africa vary significantly between insurers for the same level of cover, making comparison essential for value.
King Price makes it easy to get a commitment-free quote. You can get one online or via WhatsApp on 0860 50 50 50, whichever is more convenient. No pressure, no obligation, just a clear number so you can see where you stand.
How to get a car insurance quote from King Price
Get a commitment-free car insurance quote in under three minutes.
- Tools:
- Smartphone or computer
- Your ID number
- Your car's registration number or VIN
Choose your quote method
Visit https://ssp.kingprice.co.za/?kpcid=20000588 to get an online quote, or WhatsApp King Price on 0860 50 50 50 if you'd prefer to chat.
Enter your vehicle details
Provide your car's make, model, year, and use. The more accurate your details, the more accurate your quote.
Choose your cover level
Select third party only, third party fire and theft, or comprehensive based on your needs and budget.
Set your excess
Adjust your excess to find the premium that fits your monthly budget without leaving you exposed at claim time.
Review and confirm
Check the quote, read the key policy terms, and confirm your cover when you're happy with the price.
Step 4: Talk to the king about your options
Getting a quote is just the start. King Price’s goal is to make sure you have the right cover at a price that works for your budget, and there are several ways the king can help bring your premium down without leaving you underinsured.
- Most affordable cover level: King Price can help you work out which level of cover makes the most sense for your car and circumstances.
- Multi-car discount: Comprehensively insure more than one car with King Price and you could save up to 20% on your premiums.
- Flexible excess: Adjust your excess to find a premium that fits your budget, while making sure the excess remains an amount you could actually pay at claim time.
- Combined home and car discount: Taking out both home and car insurance with King Price could earn you a discount on your premiums.
King Price offers a multi-car discount of up to 20% when you comprehensively insure more than one vehicle under the same policy.
The right car insurance premium isn't the cheapest one you can find. It's the one that gives you the cover you actually need at a price you can sustain month after month without cutting corners when life gets expensive.
South African motor insurance affordability
As living costs rise, South Africans are increasingly adjusting their excess levels and cover types to maintain insurance without increasing their monthly spend. Flexible premium structures are now a key differentiator among short-term insurers.
Rising living costs are prompting South African motorists to review their insurance excess and cover levels as a way to manage monthly expenses without cancelling cover entirely.
The bottom line: what should you pay for car insurance?
There’s no single right answer, but there is a right process. Work out the cover level your situation demands. Set a realistic budget and use your excess as a lever to hit that number. Compare quotes from at least two or three insurers. Then talk to King Price about the discounts and options that could bring your premium down further.
Car insurance is an expense worth having. With a bit of planning, it doesn’t have to be an expensive one.
Ready to find out what you should be paying? Get an online quote from King Price or WhatsApp us on 0860 50 50 50 for a commitment-free price. The king is waiting.
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Frequently asked questions
No, car insurance is not legally required in South Africa. However, driving without it means you’re personally liable for any damage you cause to other people or their property. If your car is financed, your bank will almost certainly require you to hold comprehensive cover.
In 2022, the average monthly car insurance cost in South Africa was reported at around R1,322. However, your actual premium depends on your car’s make, model, and age, your own age and driving record, the cover level you choose, and your insurer. Comparing quotes is the best way to find out what you’d pay.
Your excess and your premium move in opposite directions. A higher excess means you pay more out of pocket when you claim, but your monthly premium is lower. A lower excess means less to pay at claim time, but a higher monthly premium. Adjusting your excess is one of the most practical ways to bring your premium in line with your budget.
Third party only cover pays for damage you cause to another person’s vehicle or property in an accident. It does not cover damage to your own car, theft, fire, hail, or hijacking. It’s the most affordable cover level and works best for older, fully paid-off vehicles.
Yes. King Price offers a multi-car discount of up to 20% when you comprehensively insure more than one vehicle. You may also qualify for a discount if you take out both home and car insurance with King Price. Adjusting your excess is another way to reduce your monthly premium.
No. If your car is financed, you’re required to hold comprehensive cover, but you are not obliged to get it from the dealership or the bank. You’re free to choose any registered insurer, which means you can shop around for a better premium.
The most effective options are: increasing your excess, choosing a lower level of cover if your car’s value justifies it, bundling home and car insurance with the same insurer for a combined discount, and adding more cars to a multi-car policy. Comparing quotes regularly also ensures you’re not overpaying.
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