The Best Insurance for Older Cars: Everything You Need to Know

You may have purchased a used car recently, inherited one from a family member or driven one you've owned since university. However you came to own it, you'll know that you'll need insurance for older cars in South Africa from a provider that recognises the unique factors accompanying owning a used car. As the provider of car insurance for old cars, here's what 1st for Women wants you to know.

Defining an older car

South Africa's pre-owned car market is booming[1] for good reason. Local sales figures show that in 2022 annual used vehicle sales increased by up to 43% compared to the previous year — exceeding the number of new vehicles traded by more than 200%. Discover more about How to buy a second-hand car with confidence. 

Before you consider your old car insurance options, it helps to know what insurers consider an older car — bearing in mind that these factors are subjective and may differ between insurers. 

• Age — Age impacts various car makes and models differently, with some completing their life cycle after a few years and others accumulating value in time as vintage models. Generally speaking, any car over a decade old is considered old.

• Mileage — Mileage ages a car, even though some cars can remain in relatively good condition if they have been looked after. If your car has clocked up over 100,000 km on the road, you can consider it old because of wear and tear.

• Technology and features — Decades ago, automatic windows, built-in GPS systems and airbags weren't common features in cars. Today's car models will come standard with features that previous models didn't have. Your car may be considered old if it lacks certain features that have become commonplace in the market. 

• Condition — Proper care and maintenance can extend your car's lifespan. A 2020 city hatchback that's missed its service intervals and been driven poorly will be in a poorer condition than a 2015 model that has been well maintained.

• Popularity — While some vehicle brands are tried and trusted in South Africa, many brands enter and exit the market annually. A car from a discontinued brand may warrant a higher premium than one with a local presence, as it would be challenging to service the former or find replacement parts for it. At the same time, the more popular brand will have technicians and spares readily available when needed.

3 Factors to consider when buying insurance for older cars

Now that you know whether your car is considered 'old', here are some factors that could impact the monthly premiums accompanying your insurance for older cars in South Africa:

1. Your car’s value

If you're driving a high-end or sought-after model, its higher market value may mean that it qualifies for a higher premium compared to insurance premiums for other older cars.

2. Your past and present driving habits

Higher-risk driving patterns and behaviours can impact your premiums. For example, if you commute long distances daily, you might expect to pay a higher premium than someone who only uses their car infrequently. If you have a history of filing claims or have had several car accidents, this can increase your risk level and premiums.

3. Your chosen coverage

Depending on your budget and needs, you can choose various coverage levels. For example, comprehensive insurance for older cars will cost more than third-party-only coverage.

Is it cheaper to buy insurance for older cars?

The good news about driving an older car is that you can generally expect to pay lower premiums across the board for the following reasons:

• Depreciation — As time passes, all cars lose value, which will result in a lower premium.

• Risk — As your car becomes older and is replaced by newer and more advanced models, its risk rate for theft decreases. 

• Coverage — New cars tend to have a higher value and are more likely to be financed. This means comprehensive insurance is often a legal requirement, which may not apply to older cars not financed with a bank.

• Affordability — Used cars tend to have lower repair and part replacement costs.

While these factors generally apply, there's no guarantee as to what premium you will have to pay, as this will depend on your unique risk profile, your insurer, and the vehicle. When choosing insurance for older cars, you should consider the coverage you'll most benefit from. You can opt for: Comprehensive coverage, Third-party Fire and Theft Insurance or Third-party Only Insurance. It’s also a good idea to consider getting a Pre-owned Vehicle Warranty, if your car is second-hand. 

Will an older car qualify for insurance?

Your used car will usually qualify for insurance without any problems. However, you may not qualify for insurance for an older car in the following circumstances:

• It's in poor condition: It may be both financially and practically unfeasible to repair a car that's experienced multiple failures, and therefore it will only qualify for limited coverage.

• It's been written off: A car that's sustained damage that the insurer believes is too costly to repair may not qualify for full coverage. Any car that's been written off in an accident or declared unroadworthy won't qualify for insurance.

Get car insurance for old cars from 1st for Women

Driving a used car shouldn't limit your options — you deserve the peace of mind that aligns with your needs and budget. 1st for Women can offer you this, and we invite you to apply for a quick car insurance quote online today to find out how we can help you get insurance for old cars. 

Sources:

[1] BusinessTech: The average price of a used car in South Africa right now

Disclaimer: The information in this article is provided for informational purposes only and should not be construed as financial, legal, or medical advice.