Young South African men often ask ‘why is a male under 25’s insurance so high?’ The thrill of getting your first car is a rite of passage. It’s the key to freedom, independence, and no longer having to rely on parents or public transport. But this excitement can quickly be dampened by the sobering reality of higher vehicle insurance costs.
So, why is a male under 25’s vehicle insurance so high ?
It often comes as a shock to discover that as a male driver under the age of 25, you are considered one of the highest-risk clients, and your monthly premiums will reflect that.
Having insurance as a young person is essential, but why is the premium higher, especially for me? Is it simply a case of ageism and gender discrimination by insurance companies? The answer, rooted in cold, hard statistics and risk assessment, is a little more complex.
The sobering statistics: A question of risk
At its core, insurance is a game of risk. Insurers calculate premiums based on the likelihood of a client lodging a claim. Unfortunately for young men, the statistics are not in their favour which is one of the main reasons why is a male under 25’s insurance so high.
Decades of data, both globally and locally, have consistently shown that young male drivers are statistically more likely to be involved in accidents, commit traffic offences, and engage in risky driving behaviour compared to their female counterparts and older, more experienced drivers.
According to the Road Traffic Management Corporation (RTMC) of South Africa, drivers between the ages of 18 and 34 are disproportionately represented in road accident and fatality statistics. Within this group, young men are more frequently behind the wheel in serious and fatal incidents. This isn’t a moral judgment but a statistical reality that insurers can’t ignore.
This heightened risk profile could be due to a combination of factors that include:
- Inexperience is a significant contributor; a newly licensed driver simply has not had the time to develop the defensive driving skills and hazard perception that come with years on the road.
- A higher propensity for risk-taking behaviour, such as speeding, aggressive driving, and driving under the influence of alcohol.
The South African Context: Unique challenges that help us understand why is a male under 25’s vehicle insurance so high
South Africa’s insurance landscape has its own unique set of challenges that can inflate premiums for all drivers, but especially for those in high-risk categories.
- Our country has one of the highest road accident rates in the world. Poor road infrastructure in certain areas, the prevalence of minibus taxis known for their often erratic driving, and a high number of uninsured drivers on the road all contribute to a more hazardous driving environment.
- Vehicle theft and hijacking are also major concerns for South African insurers. Certain vehicles, often popular among younger drivers for their style and performance, are also high on the list for criminals. If your car is a high-theft risk model, your insurer will factor this into your premium.
- The area where you live and park your car overnight also plays a crucial role. A vehicle parked on the street in a high-crime neighbourhood will inevitably attract a higher premium than one securely locked in a garage in a low-crime area.
It's not all doom and gloom - how to lower your premiums
While the odds may seem stacked against you when you are factoring in why is a male under 25’s vehicle insurance so high, there are a few practical steps a young male driver can take to make their vehicle insurance more affordable.
- Choose your wheels wisely
The type of car you drive is one of the biggest factors influencing your premium. A flashy, high-powered sports car will send your insurance costs soaring. Opt for a more modest, reliable vehicle with a smaller engine. Cars with a good safety rating and readily available, affordable spare parts are also cheaper to insure. Some of the most affordable cars to insure include models like the Suzuki Swift, Volkswagen Polo Vivo, and Hyundai Grand i10. Before you buy, get insurance quotes for a few different models to see how they compare. - Embrace telematics
Many insurers now offer “pay-as-you-drive” or “pay-how-you-drive” insurance, also known as telematics. This involves installing a small device in your car that monitors your driving habits – things like your speed, braking, acceleration, and the times of day you typically drive. If you are a safe and responsible driver, this can be a fantastic way to prove it to your insurer and be rewarded with significantly lower premiums.
- Increase your excess
The excess is the amount you agree to pay out of your own pocket in the event of a claim. By agreeing to a higher voluntary excess, you reduce the insurer’s potential payout, and they will, in turn, lower your monthly premium. However, it is important to make sure you can comfortably afford the excess amount should you need to make a claim. - Become a better driver
Completing an advanced or defensive driving course is an excellent way to improve your skills and demonstrate to your insurer that you are a serious and responsible driver. Many insurers offer a discount on your premium upon completion of an accredited course.
- Secure your vehicle
As mentioned, vehicle theft is a major issue in South Africa. Fitting your car with additional security features like a tracking device or an approved alarm system can lead to a reduction in your premium. Where you park your car is also vital. Parking in a locked garage is always the best and cheapest option. - Build a good driving record
Your personal driving history is paramount. Every year you drive without making a claim, you will build up a no-claim bonus, which will translate into a discount on your premium. Drive safely, obey the rules of the road, and avoid accidents and traffic fines. - Shop around and read the fine print
Don’t just accept the first quote you receive. Use online comparison tools to get quotes from multiple insurers. The premiums and benefits can vary significantly between companies. When you do find a policy that seems affordable, make sure you read the terms and conditions carefully. Understand what you are covered for and what is excluded.
Lower premiums depend on you
It can be frustrating and hard to understand why is a male under 25’s vehicle insurance so high. But once you know the reasoning behind these costs and take proactive steps to reduce the risks from an insurer’s perspective, it’s good to know that you have the power to make a difference in the affordability of your cover.
Drive responsibly, choose your car wisely, and be a savvy consumer – your wallet will thank you for it!
For more practical advice on everyday road safety,
contact RAF Buddy today.
