Don’t Let Inflation Leave You Underinsured—Make Sure Your Car Is Fully Covered
Inflation affects more than just your grocery bill or electricity costs—it can have a serious impact on your car insurance, too. As the cost of vehicle repairs, parts, and replacements continues to rise in South Africa, many drivers may find themselves underinsured without even realising it. This can leave you financially vulnerable if your vehicle is written off or damaged in an accident. Here’s what you need to know to make sure your car is fully covered.
What Does It Mean to Be Underinsured?
Being underinsured means that the insured value of your vehicle is less than the actual cost of replacing it at current market prices. In the event of a total loss—such as theft or an accident where your car is written off—you may only receive a payout that reflects the older, lower insured value, leaving you to cover the shortfall.
Inflation exacerbates this issue. For example, if your car was insured for R150,000 two years ago but the same model now costs R200,000 to replace due to inflation and supply chain issues, you could be left R50,000 out of pocket.
Why Inflation Is a Real Risk for Car Owners
South African motorists have faced a steady increase in costs due to factors such as a weakened Rand, rising fuel prices, and supply chain disruptions affecting car parts. As a result, insurers often adjust premiums and risk assessments accordingly—but if your policy hasn’t been reviewed or updated in the past year, you could be unknowingly driving with insufficient cover.
How to Ensure You’re Fully Covered
- Review Your Sum Insured Regularly
One of the most important steps is to check the current retail value of your car. This is the amount your insurer would likely pay out in case of a total loss. Many South Africans assume their insurer automatically updates this value, but this isn’t always the case. - Choose the Right Type of Cover
Comprehensive car insurance provides the broadest protection—it covers accidents, theft, fire, natural disasters, and third-party liability. This is especially important in uncertain economic times, where out-of-pocket repairs or replacements may be unaffordable. - Ask About Inflation Protection
Some insurance providers offer inflation-linked policies that automatically adjust your car’s insured value annually. Ask your insurer if this is included in your cover, or if it can be added. - Update Your Policy After Major Changes
If you’ve made modifications, installed tracking devices, or your car’s usage has changed (e.g., from personal to business use), notify your insurer immediately. These factors can affect your risk profile and the value of your cover. - Get an Annual Assessment
Schedule a policy check-up at least once a year. This ensures your cover keeps pace with inflation, market value changes, and evolving driving habits.
How Miway Insurance Can Help
Miway Insurance offers flexible and customisable car insurance policies tailored to meet your specific needs. Whether you’re looking to insure a new car or reassess your current coverage, Miway makes it easy to adjust your policy so you’re not left underinsured. Their online tools allow you to quickly compare quotes, update your details, and access expert support—all in a few clicks.
Final Thoughts
Inflation is out of your control, but staying fully insured isn’t. Don’t wait for an accident or theft to discover that your policy doesn’t cover the full value of your car. Take the time to review your car insurance today, update your details, and ensure your policy reflects current market conditions. It’s a small step that could save you a lot of financial stress down the road.
Remember: A well-maintained insurance policy is as important as a well-maintained car. Don’t let inflation put you in the driver’s seat of financial risk.
