When you think about why your car insurance premiums might be high, obvious factors like age, driving history, and vehicle type likely come to mind. However, there are lesser-known influences that could quietly be increasing your costs—without you even realising. Understanding what affects your car insurance rates beyond the basics can help you make better choices and potentially reduce your premiums.
Here are some of the most unexpected contributors to rising car insurance costs in South Africa:
1. Your Credit Profile
While not as heavily weighted as in some countries, your credit behaviour can still be a factor. Insurers may view those with poor credit history as higher risk, associating financial instability with an increased chance of missed payments or even fraudulent claims. Maintaining a good credit score can demonstrate financial responsibility, which may reflect positively when your premium is calculated.
2. Where You Park Your Car
Many assume that simply having off-street parking is enough to keep premiums low. But insurers assess the specific location—whether it’s a high-crime area, poorly lit, or known for high vehicle theft rates. Parking your car in a secure garage in a low-risk suburb is viewed much more favourably than leaving it on a busy street in a high-theft neighbourhood.
3. How Often You Change Cars
Frequent car changes, even if you’re upgrading, can make you appear unpredictable to insurers. Stability is often rewarded. If you’re continually switching vehicles, your insurer may raise your rates due to perceived risk—especially if you’re buying more powerful or expensive models without corresponding safety features.
4. Your Job Title
It’s not just what you do, but how you label it. A “freelance journalist” might get different rates compared to a “media consultant” even if both have similar roles. Some job titles are statistically more prone to claims, while others are seen as safer. Always be accurate, but check whether alternate yet truthful titles might impact your quote.
5. Your Marital Status
Statistically, married individuals are viewed as more stable and risk-averse, which may lead to lower premiums. If your insurer isn’t aware you’re married, or if you’ve recently changed status and haven’t updated them, you might be missing out on potential savings.
6. Modifications to Your Car
Even small modifications like upgraded sound systems, tinted windows, or new rims can affect your policy. While some are purely cosmetic, insurers may see these as increasing theft risk or altering the vehicle’s performance—both of which can raise your rate.
7. Low Annual Mileage—If It’s Too Low
While driving fewer kilometres usually reduces your risk and premium, extremely low mileage can trigger concerns. It might signal irregular use, which some insurers associate with higher chances of accidents due to lack of driving consistency or longer periods of inactivity affecting the vehicle’s performance.
8. Claiming Too Often for Minor Issues
Small claims can add up. Frequently claiming for windscreen cracks, minor dents, or stolen mirrors might flag you as a high-risk client. In some cases, it’s more economical to pay out-of-pocket and reserve your claims for significant events.
9. The Colour of Your Car
While controversial, some insurers may weigh in on colour—not for aesthetics, but visibility and theft statistics. Flashy colours like red, black, or metallic finishes may be more attractive to criminals, slightly nudging your risk factor higher.
Final Thought
It’s important to regularly review your policy details and keep your insurer updated on any changes in your lifestyle, vehicle, or driving habits. By understanding the full picture of what affects your car insurance rates, you can take proactive steps to lower your premiums and avoid unexpected cost increases.
If you’re looking for personalised, transparent coverage, Miway Insurance offers a flexible range of car insurance options that consider your individual risk profile.
Get informed, get covered, and get peace of mind—on the road and in your budget.
