Tips for Buying Car Insurance for First-time Drivers

Every new driver looks forward to that first taste of independence. Whether it’s your first car fresh out of matric or a milestone purchase later in life, owning a vehicle is a big step. And it comes with serious responsibilities. Alongside registration and roadworthiness, getting the right Car Insurance for new drivers is one of the most important steps to take. It affects how you recover from accidents, theft, or weather damage, and whether your budget stays intact. At Auto&General Insurance, we’ll help you work through your first-time driver insurance options with clarity, confidence, and cover that fits your needs.

First-time driver? Here’s what you need to know

Becoming a car owner for the first time involves practical and financial responsibilities. Knowing how to prepare and what to expect can help you avoid unnecessary stress or costs.

What to look for when buying your first car

The first step is choosing the right vehicle. Considering that most first-time drivers in South Africa start with a second-hand car, look for a car that’s mechanically sound, economical to run, and has a proven record for safety. Remember that not all used vehicles offer good long-term value, so choose something with a full service history, moderate mileage, and a high safety rating. Avoid heavily modified cars—they can be more expensive to insure and harder to maintain.

Of the one million vehicle finance applications WesBank processed in the first half of 2024, about 67% were for used cars1. This reflects their accessibility and appeal to first-time buyers. Before signing anything, request a mechanical inspection and compare pricing on similar models.

The documents you’ll need

Once you've chosen your car, you'll need to gather the right documents to complete the purchase and get insured. You’ll need a valid driver’s licence, ID, proof of residence, a signed purchase agreement or invoice, and the vehicle’s registration papers. If the car is financed, your bank or lender will require you to take out Comprehensive Car Insurance before the vehicle is released.

How to plan for running costs

Owning a car means more than paying off a loan or once-off price. Petrol, maintenance, licensing, insurance premiums, and emergency repairs all add up. If you've just bought your first car, you should budget carefully. Not only for monthly costs, but for once-a-year expenses like licence renewal or tyre replacement. Get quotes upfront for basic services, and check what service intervals apply to the model you’re interested in.

Tips to stay safe and manage your risk

How you drive directly impacts your safety and what you’ll pay for Car Insurance for new drivers. Good habits go a long way in keeping you safe and protecting your wallet. Follow the speed limit, don’t use your phone while driving 2, and avoid risky areas at night. Park in well-lit, secure places and consider installing anti-theft devices. These actions lower your chance of fines, accidents, theft, and can also lower Car Insurance premiums in South Africa. 

Why insurance costs more for new drivers

Insurers base pricing on risk. New drivers are statistically more likely to be involved in accidents, which makes their cover more expensive. Premiums are also affected by where you live, how far you drive, and the type of car you insure. With time, a clean record will help lower your costs.

6 Smart Car Insurance tips for new drivers

Car Insurance for new drivers can seem complicated, especially when you’re unsure what each policy includes. These tips will help you choose the right cover, avoid common mistakes, and manage your premium more effectively.

1. Choose the right type of cover from the start

There’s more than one kind of Car Insurance for new drivers, and each option offers different benefits. Comprehensive cover is good insurance for new drivers, as it protects against accident damage, theft, weather-related events, and more. Third-party Fire and theft insurance is more limited but may suit older cars. Always check what’s excluded before committing to any first-time driver insurance.

To understand the difference, imagine you've bought a pre-owned Suzuki Swift for cash. It's more than five years old, so you opt for Third-party Fire & Theft Insurance. While you’re driving home one evening, another car kicks a rock up, cracking your windscreen. You try to claim, only to discover your policy doesn't include windscreen damage.

2. Pick a car that’s more affordable to insure

The type of car you drive affects your premium. High-performance models, luxury imports, cars with expensive parts, and vehicles frequently targeted by thieves cost more to insure. A small hatchback with standard safety features is typically more affordable. Before buying a car, ask your insurer for a quote based on the model you’re considering. This can prevent surprises later.

3. Install a tracker to lower risk

Insurers see cars with tracking devices as lower risk because a tracker improves the chances of recovering a stolen car. This can reduce your monthly premium for your Car Insurance in South Africa.

After hearing about recent car thefts in her area, Susan installs a tracker in her Polo Vivo. A month later, her car is stolen from her driveway. Thanks to the tracker, it’s recovered within 24 hours, and Susan doesn’t have to pay any theft excess.

4. Bundle your cover if you can

If you already have insurance for your home, personal belongings, or another vehicle, bundling policies with the same provider can save money. It also makes managing claims and renewals easier.

5. Drive well and protect your record

Your driving history might matter. Avoid traffic fines, stick to speed limits, and don’t take unnecessary risks. Some insurers track your driving behaviour through apps or telematics devices and reward good driving habits.

6. Understand your excess and how it works

Your excess is the amount you pay when you claim. A lower excess might look appealing, but it usually means a higher premium, while a higher excess means lower monthly costs. Think about what you could afford if something happens tomorrow before choosing a higher excess. Also check if different excesses apply to different types of claims, like theft versus accidental damage.

Get insurance quotes for new drivers

Getting Car Insurance for new drivers is easier than you think, especially with Auto&General on your side. Request a Car Insurance quote for new drivers today and feel confident driving your new car off the dealer's lot.

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Sources:

 1 National Automobile Dealers Association: Demand for pre-owned cars outpaces new cars by more than two-to-one 

2 Cape Town ETC: SA’s road rules get tougher: Major changes coming in 2025 

3 Cars.co.za: Why Younger Drivers Pay More for Car Insurance

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