What is Car Insurance?
Vehicle insurance is insurance for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could also arise from incidents in a vehicle.
Average Car Insurance In South Africa
What is the average motoring cost per month?
A 2017 article by Carmag refers to a financial institution which says that in 2017, the average total motoring cost for South Africans was increasing sharply, amounting to 24.2% since July 2013. This was 6.1% higher compared to the cost the previous year.
The importance of motorists budgeting carefully.
With such increases occurring in total motoring costs, it is vital that motorists budget wisely. This is exemplified by the almost doubling in price of an entry level car costing R100 000 in 2007 and R183 000 ten years later.
Car instalments, maintenance costs and insurance premiums have risen the most.
The credit provider mentioned that from 2013 to 2017, car instalments, maintenance costs and insurance premiums increased the most. This can largely be blamed on car price inflation. Instalments increased by a staggering 43.8% over this period due to higher interest rates and higher car prices.
Car insurance premiums have increased considerably.
Car insurance premiums suffered from the knock-on effect of increased car prices, growing by 38.6% from 2012 – 2017.
Average vehicle costs in June 2017.
In June 2017, new vehicles financed by a credit provider cost an average of R300 181, whereas used vehicles averaged at a cost of R202 796.
What about the average monthly fuel cost per motorist?
From 2016-2017, monthly fuel costs of motorists declined, despite the increase in costs of fuel, maintenance and instalments. In July 2017, fuel made up 31% of the monthly motoring budget. The cost of fuel is largely controlled by the Rand’s exchange rate and the international oil price.With the above challenging information serving as background, it makes sense that the motorists should buy the most affordable car insurance, while at the same time, not compromising on the quality of cover.
How do you find affordable car insurance that is still high quality?
There are several things motorists can do to find affordable car insurance which can still provide great cover.
What is a normal amount of car insurance?
Drivers in the U.S. pay an average of $1,771 per year for full coverage car insurance, or about $148 per month, according to Bankrate’s 2022 analysis of average quoted premiums from Quadrant Information Services. Minimum coverage costs an average of $545 per year.