Smart Insurance Strategies for Keeping Your (Older) Ride and Wallet Happy
Chris Pretorius, Chief Underwriting and Claims Officer at GENRIC Insurance
South Africans are getting savvier about their money and realising that the shiny new car smell may very well not be worth the financial hangover. The numbers don't lie - we're keeping our cars for six to eight years now instead of the previous five-year trade-in cycle according to data released by TransUnion¹. And according to WeBuyCars, while the new car market has actually declined by 0.8%, the used vehicle market is chugging along with steady 1.1% annual growth. It also shared data on how the vehicle parc in the country is ageing, as South Africans are holding onto their cars for longer.²
Translation? We're getting smarter about not throwing our hard-earned cash at depreciating assets.
But here's the thing – driving your car longer is only a brilliant financial move if you play it smart. That means keeping your older ride in tip-top shape and protecting yourself from the financial curveballs that come with older vehicles.
Maintenance: Your Secret Weapon Against Costly Surprises
Think of regular maintenance as your insurance policy's best friend.
Chris Pretorius, Chief Underwriting and Claims Officer at GENRIC Insurance explains: "Regular maintenance isn't just about safety. It's about managing your costs in the long run. Because nothing kills your car-keeping savings faster than a surprise R40,000 engine repair bill. When your manufacturer's warranty waves goodbye, you become the captain of your own automotive destiny. The good news is that you don't have to navigate these potholes without a safety net,” adds Chris.
Your Smart Insurance Game Plan for Your Older Chariot
#1. Mechanical Warranty Insurance: Your Financial Life Jacket
Once that factory warranty expires, you're flying solo – unless you get smart about mechanical warranty insurance. For as little as R160 to R600 per month (depending on what plan you choose), you can get coverage for those heart-stopping moments when major components decide to call it quits.
Get protection for over 30 essential components including engines, gearboxes, and turbochargers – the expensive stuff that can easily hit R40,000 or more in repair costs and send you into a tailspin. GENRIC's policies cover vehicles up to 220,000 km or 12 years, which means you can keep driving that trusty steed well into its golden years without sweating the potential for big breakdowns.
#2. Service and Maintenance Plans: Spread the Love (and the Costs)
Remember when your car was pampered with manufacturer service plans? Well, once that VIP treatment ends, you need to step up. Service and maintenance plans let you spread those inevitable service costs over monthly payments instead of getting walloped with surprise bills.
These plans typically cover the ssentials – air filters, oils, brake fluid, coolant, filters, spark plugs, and all the labour that goes with it. Plus, many include maintenance components for wear and tear parts, because let's be honest, things wear out and that's just life.
#3. Tyre and Rim Insurance: Because Potholes are Real
If you've driven on South African roads, you know the pothole - aka crater - struggle is real. A single tyre blowout and rim damage can cost you serious money, which is exactly why tyre and rim insurance exists. For R80 to R245 per month (option dependant), you get coverage of R4,000 to R16,000 per incident, covering up to two wheels at a time.
This covers accidental damage like punctures, blowouts, impact breaks, and yes – pothole damage. Just remember, it won't cover you for neglecting maintenance - proper tyre pressure, wheel balancing or letting your treads wear below legal limits. Play by the rules, and you're covered.
#4. Comprehensive Insurance: Know Your Worth
Here's where many people trip up – always insure your car for its retail value (what a dealer would sell it for), not the lower market value. Keep your insurer updated on any additional features or safety devices you've added, because the last thing you want is claim-time surprises.
Keeping your car longer is absolutely the right financial call – but only if you do it right. By investing in proper maintenance and comprehensive insurance coverage, you're not just saving money on car payments; you're protecting yourself from the unexpected costs that could torpedo all those savings you worked so hard to achieve.
"By adopting a comprehensive approach to insuring your vehicle, you protect yourself from the hard financial knocks should something go wrong – whether that is an accident or theft, a major component breakdown, or a major car service which comes at a significant upfront cost," concludes Chris.
So go ahead, give that new car show room the cold shoulder. Your savings account will thank you, and with the right insurance strategy, your older vehicle can keep delivering the goods – and you - for years to come.
References:
- TransUnion - South Africa’s Auto Sector Sees Strong Growth Amid Evolving Consumer and Insurance Trends
- Moneyweb – The Steady Decimation of South Africa’s Middle Class over the last decade:
