Your car loses value every month. Your car insurance premium, in most cases, does not. That is the problem King Price fixed when it launched decreasing car insurance premiums: as your car depreciates, your monthly premium goes down automatically, no admin required. Clients have saved roughly R340 million since 2012 through this one feature.
Key takeaways
- King Price is the only major South African insurer that decreases your car insurance premium automatically every month.
- Your cover level, excess, and policy terms stay the same when your premium drops.
- King Price clients saved R15.05 million in the last year and R340 million since 2012.
- All comprehensive King Price car policies qualify, including financed and high-value vehicles.
- Decreasing premiums stack with the multi-car comprehensive discount of up to 20% off.
How cars lose value in South Africa
Depreciation is steady and predictable. It is not a single big drop. It is a slow slide that starts the moment you drive off the forecourt.
- Depreciation
- The reduction in a vehicle’s market value over time due to age, mileage, wear, and market conditions. In South Africa, most passenger vehicles lose 15% to 20% of their value in the first year alone.
| Period | Typical value lost |
|---|---|
| Year 1 | 15% to 20% |
| Year 2 | 10% to 15% |
| Year 3 | 8% to 12% |
| Years 4 to 5 | 6% to 10% per year |
| Year 10 and beyond | 2% to 5% per year |
Exact numbers vary by make, model, and market conditions. But every car in South Africa is worth less this month than it was last month. The question is whether your insurer reflects that reality in your premium. Most do not.
What is decreasing car insurance?
Decreasing car insurance is cover where your monthly premium reduces in line with your vehicle’s depreciation. No forms, no calls, no re-quote. The king adjusts your premium each month so you are not paying last year’s price for this year’s car.
Your cover level, excess, and policy terms remain the same. It is the premium that decreases, not your protection.
- Comprehensive car insurance
- A policy that covers damage to your own vehicle as well as damage you cause to other people and their property. It includes cover for theft, hijacking, fire, weather events, and accidents.
What most South African insurers do instead
Most insurers set your premium based on your car’s value at policy start and keep it flat, sometimes nudging it up at annual renewal. You end up paying month 24’s premium against month 24’s depreciated car. The maths no longer makes sense in your favour.
King Price fixes the mismatch. It is the only major South African insurer that decreases your car insurance premium automatically each month.
How much can you save with decreasing premiums?
The numbers come from King Price’s own books, updated January 2026:
- R15.05 million saved by clients in the last year through decreasing premiums
- R41.6 million saved over the last three years
- R340 million saved since King Price opened its doors in 2012
King Price decreasing premium client savings, January 2026
King Price clients saved R15.05 million in the last year, R41.6 million over the last three years, and R340 million since 2012 through the insurer's automatically decreasing car insurance premiums.
Your individual saving depends on your car’s value, your risk profile, and how long you stay with King Price. On a mid-value comprehensive policy, three-year savings of several thousand rand are realistic.
A real-world example
Sibongile in Centurion owns a R480,000 SUV. In year one, her King Price premium starts at R2,150 a month. By month 12 it is around R2,050. By month 24 it is closer to R1,900. By month 36 it is near R1,770. Over three years she pays roughly R74,000 versus about R81,000 at a flat-premium insurer with typical renewal increases. The R7,000 difference covered her entire annual home contents premium. Numbers are illustrative; your result depends on your risk profile.
How King Price decreasing premiums work
How decreasing car insurance premiums work at King Price
Here is the step-by-step process from policy start to your first premium reduction.
Take out a comprehensive car policy
Get a King Price comprehensive car insurance quote and activate your policy. Decreasing premiums apply automatically to all comprehensive car policies.
Your premium is calculated on current value
King Price sets your starting premium based on your car's current retail value, your risk profile, your chosen cover level, and your excess.
Monthly automatic adjustment
Each month, King Price automatically adjusts your premium downward to reflect your car's lower value. No action required from you.
See a smaller debit order
Your debit order decreases month on month. You will notice the reduction on your bank statement without lifting a finger.
Cover, excess, and terms stay unchanged
Your comprehensive cover level, excess amount, and all policy terms remain exactly the same throughout.
Annual review still applies
Once a year, King Price reviews your full risk profile. If your risk profile changes, your premium may adjust up or down independently of the depreciation-linked monthly decrease.
Does your cover decrease when your premium decreases?
No. This is the single most common misunderstanding about decreasing premiums.
Your cover remains fully comprehensive. Only the premium shrinks. The insured value of your car tracks its current market value, which is how insurance should work. If your car is stolen tomorrow, King Price pays out the current retail value, the same as any insurer, just without having overcharged you in the meantime.
King Price pays out the current retail value of a stolen or written-off vehicle, the same as standard comprehensive insurers, while keeping the monthly premium aligned to that depreciating value.
Which vehicles qualify for decreasing premiums?
All comprehensive King Price car policies qualify for decreasing premiums. That includes:
- New vehicles from any dealership, including luxury and premium brands
- Second-hand vehicles bought privately or through a dealer
- Financed vehicles (your bank still gets the same cover)
- High-value vehicles where the rand savings are largest in absolute terms
All comprehensive King Price car insurance policies qualify for automatically decreasing premiums, including new, second-hand, financed, and high-value vehicles.
Pros and cons of decreasing car insurance premiums
Pros
- Your premium drops monthly as your car ages
- No admin needed: it is automatic
- Your cover level stays the same
- Roughly R340 million saved across clients since 2012
- Works on financed and cash vehicles
- Combines with the multi-car comprehensive discount of up to 20% off
Cons
- Only available through King Price
- Only applies to the depreciation element: other risk factors can still affect premiums at annual review
- Does not apply to classic or collectible cars the same way, as those assets can appreciate rather than depreciate
When decreasing premiums matter most
This feature makes the biggest difference in these situations:
- You drive a newer vehicle that will depreciate sharply in years one to three
- You finance your vehicle and want the premium to match the car’s real value
- You own a higher-value car, where absolute rand savings are largest
- You own multiple cars and want to stack compounding discounts
Common mistakes to avoid
- Assuming the premium decrease means less cover (it does not)
- Staying with a flat-premium insurer out of inertia
- Comparing month-one quotes only, without accounting for year-two and year-three savings
- Forgetting to add a second car to unlock the multi-car discount
- Not updating the insured value on a flat-premium policy, which creates an under-insurance risk over time
- Under-insurance
- A situation where the insured value of an asset is lower than its actual replacement or market value. If you claim, the insurer may only pay out a proportionate amount, leaving you to cover the shortfall yourself.
Tips for getting the most out of decreasing premiums
- Insure all household cars comprehensively to stack the multi-car discount
- Set a voluntary excess you can genuinely afford to pay in the event of a claim
- Check your risk profile at each annual review so there are no surprises
- Pair decreasing premiums with R1 insurance add-ons for selected extras
- Refer a friend and collect R1,000 per policy taken up, subject to receipt of the first premium payment
The idea behind decreasing premiums is simple: your car is worth less every month, so your premium should be too. We built it into every comprehensive car policy from day one because it was the right thing to do for clients.
Your decreasing-premium checklist
- Is your car insured comprehensively?
- Is your insured value tied to current market value?
- Is your premium reducing month on month?
- Are you using the multi-car discount if you have more than one car?
- Have you reviewed your cover in the last 12 months?
Key takeaway
In summary: your car loses value monthly, and King Price’s premium does too. Cover stays the same. Only the debit order shrinks. If your current insurer is still charging you last year’s price for this year’s car, that is worth fixing.
Premiums are risk-profile dependent, paid monthly, and reviewed annually. The depreciation-linked decrease happens automatically each month between annual reviews.
Among major South African insurers, only King Price offers monthly decreasing car insurance premiums. The premium drops each month in line with your car’s depreciating value, automatically and without any admin on your part.
No. Only the premium shrinks. Your cover level, excess, and policy terms remain exactly the same. The insured value of your car tracks its current market value, which is how comprehensive insurance should work.
King Price clients have saved roughly R340 million through decreasing premiums since 2012, including R15.05 million in the last year alone. Individual savings depend on your car’s value, your risk profile, and how long you stay with King Price.
No. It is completely automatic. Once you are on a qualifying King Price comprehensive car policy, your premium decreases each month without you doing anything at all.
Yes, for its current retail value. That is how all comprehensive policies work in South Africa. King Price keeps your premium aligned with that current value each month, rather than holding it at last year’s number.
Yes. Financed vehicles qualify for decreasing premiums. Your bank, which holds the title, is still fully covered, and the premium decreases as normal each month.
Classic cars depreciate differently and can sometimes appreciate in value. King Price offers a separate collectable car product priced to reflect that market. Speak to a King Price consultant about the right fit for your vehicle.
Yes. Decreasing premiums stack with the multi-car comprehensive discount of up to 20% off when you insure more than one vehicle comprehensively with King Price. You can also pair the feature with R1 insurance add-ons for selected extras.
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Frequently asked questions
If your current insurer is charging you yesterday’s premium for today’s car, it is time to take your place at the throne. Get an online King Price quote and see how much your premium could decrease each month as your car depreciates. Already know what you want? Get a quote and let the king sort it out.
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