Factors like age, claims history and even where the vehicle is parked can affect the premium.
Two South Africans can drive the same car, park in the same suburb and still pay very different monthly insurance premiums.
This seems unfair, especially when your friend, neighbor or coworker casually mentions that they're paying a few hundred rands less for a cover on the same make and model. But insurers aren't just pricing the vehicle. They're valuing the driver, the risk, and the possibility of something expensive going wrong.
As Ernest North, co-founder of Naked Insurance, says: “People often assume that the cost of car insurance lies primarily on the car. But in reality, insurers are trying to guess two things: how likely you are to make a claim, and how expensive that claim is likely to be. That's why your insurance quote and your neighbor's insurance quote may be different, even if you drive the same car.”
In other words, your premium isn't just about the metal on four wheels. It's also about you, where you drive, where you park, your claims history and the choices you make when making your policy.
Your car is only part of the story
Insurers look at many factors when deciding how much to charge you. This includes your age,…