SA motorists face increase in car insurance premiums
South Africa is pushing up car insurance premiums due to theft of high-value vehicles.
The rising cost of car insurance is making it increasingly difficult for South Africans to afford the service.
The cost of car insurance is calculated based on a variety of factors such as the make, model, age and value of the car, the driver’s age, gender, driving record and location.
But an increase in vehicle theft is also having a major impact on premiums.
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According to Business Tech, insurers are suggesting ways of disabling keyless entry and compulsory trackers as a solution for vehicle owners.
This is due to the rampant vehicle theft of high-value cars in South Africa. This is pushing up car insurance premiums.
An increase in the number of uninsured drivers and a rise in fraudulent claims have also resulted in higher premiums for all drivers, regardless of their driving record.
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Outsurance CEO Marthinus Visser says he is concerned about the impact of crime on insurance claims.
"We are seeing more high-value vehicles and 4X4s being stolen, mostly those with keyless entry. That obviously increases the cost of insuring those vehicles significantly," says Visser.
According to the latest crime figures, which were released in February 2023, more than 23,000 carjackings were reported by the end of 2022. This would represent an average of 63 vehicles per day.
The provinces that have been hit hard with carjackings are Gauteng, KwaZulu Natal and the Western Cape.
According to Fidelity ADT, there are cars that a lot of criminals are targeting lately and are considered high value.
These are some of the vehicles that have been said to be at high risk of being stolen:
- Toyota Prado
- Toyota Landcruisers
- Toyota Hilux
- Ford Ranger
- Toyota Fortuner
- Nissan NP200
This has left a massive impact on Outsurance’s premiums, with the insurance company noting that gross written premiums grew by almost 8.7%.
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