The Ultimate Guide to Car Insurance for Teen Drivers in South Africa

PineChats

July 9, 2024
by
Team Pineapple

Eighteen (18) is a significant birthday for South African youth. It means you can now enjoy grown-up privileges that were previously denied to you: R-rated movies, piña coladas, and you’re legally allowed to have a driver’s license. 

But every teen’s dream of cruising the streets can also be a parent’s worst nightmare. 

Young people are notoriously reckless on the road; we have the statistics to prove it. 

The RAF (Road Accident Fund) revealed that young people are involved in about 40% of the country’s total road crash deaths. 

In a separate article by TimesLIVE, Minister of Transport Sindisiwe Chikunga said, “Research has shown our employed youth are the ones who carry the heaviest burden of road crashes, injuries and fatalities.”

So, how can you, as one of Mzansi’s newest motorists, ensure you don’t become the latest addition to this statistic? 

With car insurance, of course–read on to discover how.

Driving safely and responsibly as a young driver is crucial.

Content:

  1. Why Teenagers Pay More for Car Insurance
  2. Finding Cheaper Insurance
  3. Choosing the Best Policy
  4. Final Thoughts
  5. Conclusion

Why Teenagers Pay More for Car Insurance

Teenagers, and first-time drivers, pay more for car insurance because of their lack of driving experience and notorious risky road behaviour. Bravado, a sense of invincibility or simply youthful exuberance might make your teen take unnecessary risks ‘just because’. 

Some dangerous driver conduct that is often identified in young motorists are:

  • Distracted driving (texting, eating, etc.)
  • Poor judgment and dangerous manoeuvres
  • Forgetting safety precautions (fastening seat belts, locking doors, etc.)

The behaviour can mainly be attributed to the brain’s frontal lobe, especially the prefrontal cortex, which is still developing. This area of the mind is in charge of rational decision-making, impulse control, and decision-emotional regulation. 

The behaviour can mainly be attributed to the brain’s frontal lobe, especially the prefrontal cortex, which is still developing. This area of the mind is in charge of rational decision-making, impulse control, and decision-emotional regulation. 

So, teen motorists might struggle with exercising the required level of caution while behind the wheel.

Although your teen might not be guilty of any of the above offences, they, too, have to pay the price.

And the story of one’s risk profile doesn’t end there. Other factors that can affect your young driver’s risk are:

  1. Driving experience/licence age.

Practice makes perfect, and when it comes to driving, there simply isn’t a substitute for experience. Therefore, a newly minted licence may raise concerns about the driver’s capability.

  1. Location/Where you park the car overnight.

Some areas are more high-risk than others, meaning there’s an increased likelihood of a covered peril (insured event) happening. For example, a notoriously dangerous area might mean hijackings and car theft are likely to occur.

  1. Insurance history.

Insurers often ask about your insurance history to establish whether you’ve had a policy before. If so, they want to determine how much of a risk you pose as a client. Were you able to make your monthly premium payments consistently? Have you been involved in accidents that resulted in a claim being filed?

  1. The vehicle’s make and model.

The purpose of short-term insurance policies is to put you in the same financial position you were in before the loss happened. So, insurers will cover your car for its current retail value (at the time of the accident/claim event); the more expensive the ride, the higher the premium price. 

  1. The car’s use.

The more time your car spends on the road, the more likely you will get into an accident. Additionally, using your car for business/commercial use might also hike up your premiums.

Finding Cheaper Insurance

Before you press the panic button, there is still hope for inexpensive car insurance for under 25s. But before we go any further, it’s crucial to note that there’s a difference between affordable and cheap insurance.

Cheap car cover usually refers to insurance policies such as third-party (or liability) and third-party fire and theft vehicle insurance.

Though there is nothing inherently wrong with cheap car insurance, it’s worth noting that these policies might leave your car exposed. They prioritise lower premiums over extensive coverage. This means your car is not covered against collision-related accidents, weather-related damage or any other damage, really.

Thankfully, another more robust policy exists: comprehensive car insurance.

It’s in the name; comprehensive cover offers comprehensive protection while also ensuring third-parties are taken care of. 

It typically also includes add-ons like car hire and credit shortfall cover (the difference between your comprehensive insurance and the outstanding balance you owe to your finance house), but this depends on the insurer.

Currently, there are no insurance companies specialising in insurance specifically for young drivers. 

But, insurers like Naked Insurance and Pineapple, of course, use technology such as apps and AI chatbots to make insurance more accessible and affordable. 

This quick and convenient way of insuring often resonates with millennials (born between 1981 and 1996) and the TikTok generation that follows (gen-z); they’re a tech-savvy bunch that’s constantly on the move.

We’ve put together the following list to help you get an idea of what car insurance might* cost for a 18-20 year old South African driver:

2022 and above**

  1. Ford Fiesta - R653 p/m.
  2. Suzuki Swift - R661 p/m.
  3. Toyota Etios - R572 p/m.
  4. VW Polo Vivo - R890 p/m.
  5. Hyundai Grand i10 - R610 p/m.

2021 and below** 

  1. Ford Fiesta - R517 p/m.
  2. Suzuki Swift - R539 p/m.
  3. Toyota Etios - R472 p/m.
  4. VW Polo Vivo - R557 p/m.
  5. Hyundai Grand i10 - R442 p/m.

*Pineapple prices. All premiums are risk profile dependent.

**Year of manufacture.

Choosing the Best Policy

Here’s a quick checklist of factors to consider when searching for the best car insurance for your teen:

  • Level of coverage
  • Price (monthly premium and excess amount)
  • Customer Service
  • Claims Process
  • Additional Benefits

Checklist of factors to consider when searching for the best car insurance for your teen: Level of coverage. Price (monthly premium and excess amount). Customer Service. Claims Process. Additional Benefits

Comprehensive coverage is very beneficial for teen motorists because it provides extensive protection. As inexperienced drivers, they can greatly benefit from a policy that supports them in the event of a collision, vandalism or accidental damage, a random breakdown, or the financial blow from a write-off.

Additionally, comprehensive cover also includes protection from acts of nature. So, the next time Mother Nature throws a fit, insuring your car against hail, flood, and more can bring immense peace of mind.

Your next consideration, and arguably the most important, is the cost of comprehensive car insurance.

It’s more costly than a third-party policy, but that’s a given once you take all its benefits into account. Still, insurance can be both affordable and all-inclusive. 

As mentioned earlier, the best way to find competitive premium prices is through direct comparison. Don’t settle for the first quote you receive; you might miss out on an even sweeter deal!

Remember to take the excess amount, which is the fixed fee you have to pay if you claim from your insurer, into account, as well. 

Read more about Pineapple’s claims process in our article ‘Answering 11 Of The Most Common Claims Questions.’

And for an even lower monthly insurance premium, you could increase your excess. The higher your excess (the more risk you’re willing to take on), the lower your premium. 

However, it’s vital to ensure that you can still afford the excess fee when you need to claim. 

A R15,000 excess is wonderful and all, but is that money you have lying around for emergencies? Especially in this economy?

Your next consideration should be the insurance company or provider’s reputation. Good customer service likely means the insurer will be responsive, helpful and efficient.

One of the best places to start would be review platforms like Hellopeter or Google reviews. 

An excerpt from Mybroadband said of Google reviews in particular, “this review platform requires reviewers be verified and only allows them to submit one review per business and per email address,” making them more reliable and reputable.

Shameless self-plug, but you’ll never guess who landed in pole position on their list of South Africa’s top-rated car insurers according to Google reviews!

Additionally, as a young motorist who might not know a lot about insurance, you need an insurer who will take the time to educate, guide and empower you in this new era of your life. 

Most importantly, a solid reputation for customer excellence can indicate a smooth and stress-free claims process, should the time come. 

Lastly, added benefits are as vital to the policy as any other offering included in the package. 

For example, Pineapple offers the Drive Less Get Blessed benefit, which rewards drivers who drive under 300 km in a month with up to 30% of their premiums back.

Other benefits you might want to also consider include:

  • Fuel assistance
  • 24/ roadside assistance and towing
  • Car hire
  • Credit shortfall cover
  • Windscreen and window repair
  • Key replacement
  • Emergency accommodation

With all these factors in mind, you’ll be set to choose a policy that caters to your driving and financial needs.

Final Thoughts

While money matters, it’s essential to remember that choosing the right car coverage for your teen involves more than just the monthly premium. 

Failing to get the best policy might leave you paying in more ways than one!

Consider all the above factors to ensure you get the best value for your hard-earned cash. More importantly, doing so means equipping the baby driver in your life with the safety and security they deserve.

If you’ve read this far, you’re clearly someone who’s serious about getting car insurance.

So, allow us to simplify the process; click here to receive an obligation-free quote for Pineapple’s comprehensive car insurance.

Obligation-free means no lengthy sales calls or annoying on-hold music, just 100% pure insurance. 

But if you’d prefer to speak to a living, breathing human, we can accommodate you, too. 

Simply send us a quick WhatsApp message (060 012 3771), and our friendly, qualified, and helpful agents will contact you faster than you can say, “I’d like to buy a comprehensive car insurance policy for my teen.”

Don’t believe us? Try it and see for yourself.

Conclusion

The right insurance policy for your teen driver is a key step in securing their financial security, safety and overall well-being. 

You can do this by familiarising yourself with the different insurance policies (comprehensive, third-party fire and theft). Keep in mind that comprehensive car insurance can offer the most protection.

Use online tools and websites to get the best quote and explore possible discounts and benefits offered by each insurer. 

And lastly, keep customer service top of mind as this can sweeten or sour your teen’s insurance experience.

By following these steps, you can equip your teen with a sufficient level of coverage and enough peace of mind for you both.

Please Note: The information provided above is for informational purposes only; you should not construe any such information as legal or financial advice. 

Pineapple (FSP 48650) is underwritten by Old Mutual Alternative Risk Transfer Insure Limited, a licensed Non-Life Insurer and authorised FSP. T&Cs apply.

Team Pineapple

Team Pineapple comprises our company’s top talents, who are dedicated to creating clear, high-quality content on essential vehicle insurance topics. This diverse group, including actuaries, accountants, data scientists, and insurance professionals across South Africa, collaborates to produce enlightening and empowering articles.

Each piece is thoroughly researched, factually accurate, and rigorously reviewed to ensure quality.

*We say they’re the finest because we want them to keep writing for us!

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Disclaimer

Please Note: The information provided above is for informational purposes only; you should not construe any such information as legal or financial advice.

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