Car insurance · South Africa

Car Insurance in South Africa: A Plain-English Guide

Car insurance pays for damage to your car, or damage you cause to someone else's, in exchange for a monthly premium. This guide explains how cover works in South Africa, what drives the price, and how to compare insurers without getting caught out by the excess.

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How car insurance works

You pay a premium, usually monthly, and the insurer agrees to cover certain events up to an agreed value. When you claim, you pay the first part of the cost yourself, called the excess, and the insurer pays the rest. Four things decide what you actually get:

Cover type

Which events are covered: just damage to others, or also theft, fire and accidents involving your own car.

Insured value

What the insurer pays if the car is written off. Retail, market or trade value can differ by tens of thousands of rand.

Excess

What you pay per claim. Extra excesses often apply to young drivers, new licences or single-vehicle accidents.

Conditions

Rules you must follow, like keeping the car locked or in a garage at night, or having an approved tracker fitted.

Read the conditions carefully. A claim can be reduced or rejected if the car wasn't kept where you said, or someone other than the regular driver was using it, and the policy didn't allow for that.

Is car insurance compulsory in South Africa?

No, not for private cars. Unlike the UK, South Africa has no law forcing you to insure your car. The Road Accident Fund (RAF), funded through the fuel levy, compensates people injured or killed in road accidents, but it never pays for damage to vehicles or property. If you cause an accident without insurance, you can be held personally liable for the other driver's repair bill.

In practice: if your car is financed, the bank will insist on comprehensive cover. If you own it outright, at least third party cover protects you from paying for someone else's car. Do you need car insurance? →

Types of car insurance

Cover typeYour car: accidentYour car: theft, hijack, fireDamage to othersBest suited to
Comprehensive✓✓✓Financed, newer or valuable cars
Third party, fire & theft–✓✓Older cars you could afford to repair yourself
Third party only––✓Low-value cars, as a minimum
Total loss / limited coverWrite-off onlyUsuallyLower limitOlder cars where only a write-off would hurt

Names vary by insurer. MiWay calls its levels Comprehensive, Lite and Total Loss; OUTsurance has an Essential option for older, unfinanced cars. Always read what's actually listed rather than relying on the name.

Direct, broker, bank or comparison site?

Direct insurers

You deal with the insurer yourself, online or by phone. Examples: OUTsurance, MiWay, Budget, Dotsure, iWYZE.

Brokers and advisers

An intermediary compares insurers and helps at claim time. Examples: Santam via a broker, PSG, Affinity.

Bank insurers

Your bank's own insurer, often with rewards linked to your account. Examples: FNB, Absa, Nedbank.

Comparison sites

One form, several quotes. You still buy from the insurer. Example: Hippo. See how comparison sites work.

What affects your premium

  • The car: its value, how often that model is stolen or hijacked, and how expensive its parts are.
  • Where it sleeps: your suburb and whether the car is kept in a locked garage, behind a gate or on the street.
  • The driver: age, years licensed and claims history. Young and newly licensed drivers usually pay more.
  • How you use it: private use or business use, and how many kilometres you drive a year.
  • Your excess: a higher excess usually lowers your premium, but you pay more when you claim.
  • Security: an approved tracker or immobiliser can earn a discount, and may be required for high-value cars.

How to compare car insurance quotes

  1. Get at least three quotes, mixing direct insurers with a broker or comparison site.
  2. Make every quote like-for-like: same cover type, same insured value (retail vs market), same drivers.
  3. Compare the excess, including additional excesses, not just the monthly premium.
  4. Check what's included: car hire, windscreen, roadside assistance and liability limits.
  5. Answer every question honestly. Wrong information is one of the main reasons claims are rejected.

Our car insurance quotes guide has a full checklist and a quote request form.

Car insurance companies we cover

Plain-English guides to 17 South African car insurance brands: how you buy, who underwrites the cover and what to check.

Bank insurer

Absa Car Insurance

Driving-behaviour rewards on motor premiums.

How you buy: Direct: online (Activate) or call centre (iDirect)

Read the guide →
Direct insurer

Discovery Car Insurance

Vitality Drive rewards for good driving, including fuel cash back.

How you buy: Direct: online or in the Discovery Insure app

Read the guide →
Direct insurer

OUTsurance Car Insurance

OUTbonus: cash back after three claim-free years.

How you buy: Direct: online or by phone

Read the guide →
Direct insurer (Santam group)

MiWay Car Insurance

Three cover levels and an excess you can adjust.

How you buy: Direct: online, app or phone

Read the guide →
Insurer (broker and direct)

Santam Car Insurance

Santam CashBack after three claim-free years.

How you buy: Through an intermediary (broker), or a direct online quote

Read the guide →
Underwriting manager (broker-only)

Affinity Car Insurance

Broker-led service from a specialist underwriting manager.

How you buy: Only through a registered broker

Read the guide →
Adviser-arranged (Santam cover)

Sanlam Car Insurance

Car cover arranged as part of wider financial planning.

How you buy: Through a Sanlam financial planner

Read the guide →
Adviser / broker

PSG Car Insurance

A personal adviser for cover and claims.

How you buy: Through a PSG Insure adviser

Read the guide →
Brand now part of Momentum Insure

Alexander Forbes Car Insurance

Existing policies carried over when the business merged.

How you buy: Quotes and policies now through Momentum Insure

Read the guide →
Bank insurer

Nedbank Car Insurance

Cashback for claim-free years, plus MyCover add-ons.

How you buy: Direct: online application or sales call-back

Read the guide →
Direct online insurer

Dotsure Car Insurance

Name Your Price: switch parts of the cover on or off.

How you buy: Online only: quote, buy and manage online

Read the guide →
Bank insurer

FNB Car Insurance

eBucks rewards on your premium.

How you buy: Direct: FNB app, phone or email

Read the guide →
Comparison site (not an insurer)

Hippo Car Insurance

Several car insurance quotes from one form.

How you buy: Online comparison, then you buy from the insurer

Read the guide →
Direct insurer (Old Mutual)

iWYZE Car Insurance

Direct cover backed by Old Mutual.

How you buy: Direct: online, phone or wyzeHUB app

Read the guide →
Insurer (broker and direct)

Old Mutual Car Insurance

A long-established insurer you can reach through a broker.

How you buy: Through brokers or advisers, or a direct quote request

Read the guide →
Direct insurer (Telesure group)

Budget Car Insurance

An annual payment holiday and a cash back bonus after two claim-free years.

How you buy: Direct: online quote or call-back

Read the guide →
Manufacturer-branded insurance

VW Car Insurance

Repairs to factory specification with genuine parts.

How you buy: Through Volkswagen Financial Services and VW dealers

Read the guide →

Compare all car insurance companies side by side → · Our picks by need →

Add-ons and related cover

Car insurance doesn't cover everything. These separate products fill some of the gaps. They're optional, so only buy what you'd actually use.

Scratch and dent

Small cosmetic repairs you wouldn't claim for on your main policy.

Car warranty

Mechanical and electrical breakdowns, which car insurance doesn't cover.

Rental car cover

Waivers for a hired car, and car hire while yours is being repaired.

A tracker can lower your premium

Many insurers require an approved tracker on higher-value cars, and most give a discount when one is fitted. See which trackers insurers accept or estimate your saving.

Compare trackers

Car insurance questions

Is car insurance compulsory in South Africa?+

No. South African law doesn't require private car owners to have car insurance. The Road Accident Fund, paid for through the fuel levy, covers some injury and death claims, but it doesn't pay for damage to your car or anyone else's. If your car is financed, the bank will require comprehensive cover. More in our guide: do you need car insurance?

What is the cheapest type of car insurance?+

Third party only is usually the cheapest, because it covers only damage you cause to other people's property, not your own car. Third party, fire and theft costs a little more and also covers your car if it's stolen, hijacked or burnt. Comprehensive costs the most and covers the widest range of events.

How much does car insurance cost in South Africa?+

There's no single price. Premiums depend on your car's value and model, your age and licence history, where the car is kept overnight, how far you drive, your claims history and the excess you choose. The only reliable way to know is to get several quotes for the same cover.

Should I use a broker or buy direct?+

Either can work. A direct insurer is usually quicker and you deal with it yourself. A broker can compare several insurers and help you at claim time, but may charge a fee. If you use a broker, ask how many insurers they compared.

Does a car tracker lower my car insurance?+

Often, yes. Many insurers give a discount when an approved tracker is fitted, and some require one above a certain vehicle value. Check your insurer's approved list first. See insurance-approved car trackers.

Tracker Prices SA is an independent information site. We are not an insurer or a licensed financial services provider, and nothing here is financial advice. Insurer details are summarised from each insurer's own published information, last checked September 2026. Cover, benefits and prices change, so always confirm them in your quote and policy wording. For a complaint about an insurer you can contact the free National Financial Ombud Scheme.

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