Katlego Sekhu
“Does the location where your car parks most determine the cost of your car insurance premium?”
This was the pressing question posed by Glen, Skhumba, and Kgomotso during a recent episode of Make It Make Sense with Ayanda.
They specifically questioned whether premiums are higher when vehicles are primarily parked in township areas.
While crime remains a nationwide challenge in South Africa – not limited to townships – the team sought clarity on how location impacts insurance pricing.
They interviewed Zakes Sondiyazi, Insurance Risks Manager at SAIA, for expert insight. Sondiyazi explained that while location does factor into premiums, it’s not the primary consideration.
“First and foremost,” he noted, “the premium depends on who’s driving the vehicle. Location is just an additional factor.”
To explain this, Sondiyazi shared a personal example:
“I’m 50 years old and live in a township. I drive a BMW and pay just R359 for my premium. Why? Because I’ve been driving for over 30 years with continuous insurance coverage and no claims.”
He highlighted three key factors influencing premiums:
- Driver profile (age, experience, claims history) Security measures (like tracking devices)
- Vehicle usage (private vs. business) and repair costs
- “These elements,” Sondiyazi emphasised, “play a more critical role than location alone in determining your premium.”
For the full discussion, listen to the podcast.
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