--- title: "The 2 car insurance numbers that could save you thousands" description: "When comparing car insurance quotes, most South Africans focus on one number: the monthly premium." type: "NewsArticle" publisher: "Daily Maverick" site: "https://www.dailymaverick.co.za" section: "Sponsored Content" author: "Prime" author_url: "https://www.dailymaverick.co.za/author/prime/" canonical_url: "https://www.dailymaverick.co.za/article/2026-09-16-the-2-car-insurance-numbers-that-could-save-you-thousands/" published: "2026-09-16T09:00:00" lang: "en-ZA" word_count: 1042 --- # The 2 car insurance numbers that could save you thousands > When comparing car insurance quotes, most South Africans focus on one number: the monthly premium. By Prime · Published 16 September 2026, 11:00 SAST ## Content That's understandable. The premium affects your household budget every month. But there is a second number that deserves just as much attention: the excess. What many motorists don't realise is that these numbers don't always stay the same. While premiums and excesses are often fixed, some insurers offer features that reward claim-free driving. At Prime South Africa, for example, clients can choose a reducing excess option that can reduce the basic excess to zero after 36 claim-free months, while comprehensive premiums remain fixed for 24 months for claim-free clients. That means understanding these two numbers isn't just about comparing today's quote. It is about understanding what your insurance could look like a year or two from now. ### **Put the excess into rands** Consider two comprehensive car insurance quotes: - Option A: **R800**per month with a **R10,000 basic excess** - Option B: **R950** per month with a **R5,000 basic excess** At first glance, Option A appears to be the better deal because it costs R150 less per month, saving R1,800 over a year. However, the lower premium comes with a trade-off: if you have an approved claim, you would need to pay R10,000 towards the claim before the insurer pays the balance. Under Option B, you pay R150 more each month, but your contribution towards an approved claim is reduced to R5,000. In other words, you are paying more upfront each month in exchange for lower out-of-pocket costs if you need to claim. Compared to Option B, Option A means finding an additional R5,000 at claims stage. While the monthly saving may seem attractive, it would take almost 3 years of saving R150 per month to equal that R5,000 difference in excess. Neither option is automatically better. Someone with a healthy emergency fund may be comfortable choosing a higher excess in exchange for a lower premium. Another household may prefer to pay slightly more each month in return for a lower contribution if they need to claim. A useful question to ask yourself is: If I had to claim tomorrow, would I comfortably be able to pay the excess? If the answer is no, the cheapest premium may not necessarily represent the best value. ### **Check how your excess works** The basic excess shown on a quote may not be the only excess that can apply. Depending on the insurer and policy, additional excesses may apply in specific circumstances, such as the type of claim, the driver's profile or other policy conditions. It is also worth understanding exactly how the excess is calculated. For example, if an excess is expressed as a percentage rather than a fixed Rand amount, the amount payable at claims stage may be significantly different from what you initially expected. This could mean that if your car is insured for R500,000 and the policy applies a 10% basic excess, you would be responsible for paying R50,000 towards an approved claim. Likewise, 10% on R200,000 repair cost for the accident damage could mean R20,000 that you must pay upfront. Percentages can be easy to overlook on paper, so it is important to convert the excess into an actual Rand amount before committing to a policy. ### **Why excesses matter over time** Most people compare insurance quotes based on what they will pay this month. A better approach is to ask what your car insurance could cost over the life of the policy. This is where features such as reducing excesses and stable premiums become valuable. With Prime Comprehensive car insurance, clients can choose a reducing basic excess option. For claim-free clients, the excess reduces over time and can eventually reach zero after 36 claim-free months. At the same time, comprehensive premiums remain fixed for 24 months while the client remains claim-free. For a household budget, these features work together in a practical way. The premium provides certainty about what you will pay each month, while the reducing excess can lower what you may need to contribute if you need to claim in future. Over time, both the regular cost of insurance and the potential cost of a claim become more predictable. ### **Looking beyond the insurance policy** Value is not only about premiums and excesses. For a household budget, these two unique benefits work together in a very practical way - the fixed premium gives you certainty about your finances for 24 months, while the reducing basic excess can lower the out-of-pocket amount if you need to claim. Over time, that can make both the regular cost of your insurance and the potential cost at claim stage easier to plan for. Prime clients can also look beyond the premium and excess when considering overall value by adding [Prime Advantage](https://prime.co.za/prime-advantage-rewards/?ref=DMEA0802), a rewards membership that gives access to qualifying **savings up to R4,500****per month** on everyday expenses such as groceries, e-hailing, travel and car hire. It adds another layer to the value of the insurance relationship: cover for the car, more predictable insurance costs, and access to everyday savings through Prime Advantage. For a household planning its budgets, these benefits can help stretch the same monthly Rands further. ### **Know both numbers before choosing the policy** Before accepting a comprehensive car insurance quote, check the premium and excess together. Look at the monthly premium, the basic excess and any additional excesses that may apply. Find out whether the excess stays the same or can reduce over time and consider whether you would realistically be able to pay it if you had to claim. Before accepting a quote, know what you’ll pay each month and what you may need available if you claim. Both need to work for your budget. Get a quote from Prime and compare the premium, excess and cover with your current insurance; you may find there’s more value in the numbers than you expected. **DM** [See how much Prime SA could save you](https://prime.co.za/car-insurance/?ref=DMEA0802) **Disclaimer** This article provides general information about car insurance excesses in South Africa. Excess amounts and premiums depend on the policy selected and the circumstances of the claim. T’s & C’s apply. Insurance benefits underwritten by Santam Structured Insurance Ltd, a licensed non-life insurer and Auth FSP 1027. Prime South Africa is an authorised FSP 41040. Prime Advantage is not an insurance product and is administered by Advantage Rewards.