Car insurance checklist South Africa — excess, tracker

Short answerChecked 31 October 2026

Before you buy car insurance in South Africa, check five things in writing: the excess on each type of claim, any tracking device condition, the value the insurer pays (retail, market or trade), the exclusions (speeding, alcohol, roadworthiness), and the claims rules. The Policyholder Protection Rules oblige the insurer to tell you the excess, premium and significant exclusions before you sign, give you 14 days to cancel a new policy, and, if it rejects a claim, give reasons and at least 90 days to answer it.

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Answers come from the law, the regulator and the insurers' own documents, with the source under each answer. General information, not advice.

What excess will I pay on a claim?Am I covered if I use the car for business?What should I check before I renew?

On this page · 8 sections

What the law says car insurance is
The checklist before you sign
Your rights while the policy runs
Write-offs: what happens to the car
Claims: the rules the insurer must follow
If your claim is rejected
FAQ
Sources

What the law says car insurance is

Car insurance is class 1 "Motor" of non-life insurance under the Insurance Act 18 of 2017: it "covers damage or loss resulting from the possession, use or ownership of motor vehicles", in personal and commercial lines. Only third-party injury cover is public — the Road Accident Fund, paid through the fuel levy; damage to your car and to other people's property is what you buy (see car insurance in South Africa and third-party vs comprehensive).

How a policy is sold and paid is governed by the Policyholder Protection Rules (Short-term Insurance), which every insurer must follow (PPR). Any clause that makes you waive these rights is void (rule 8).

The checklist before you sign

If you rely on a quote, or buy by phone, internet or app, the insurer must give you this information before the policy starts (rules 11.4.1–11.4.2, PPR). Use it as your checklist:

Excess: every excess that may become payable, when it applies and what happens if you do not pay it (rule 11.4.2(d)). Ask for the figure on each claim type — accident, theft, windscreen, a young or new driver.
Premium: the amount, how often you pay, whether and how it can increase, and what happens if you miss a payment (rule 11.4.2(e)). Every amount must be stated in rands (rule 11.3.1).
Significant exclusions and limitations: anything that could change your decision — waiting periods, limits on cover, restrictions on who may claim (rule 11.1). Typical ones the ombud sees: lack of due care (speeding), alcohol, unroadworthiness, non-disclosure (NFO).
Tracker condition: whether an approved tracking device is required, and for which risks. OUTsurance's notice, for example, states that if the device "is not installed or not in a working condition or the tracking subscription has not been paid, you will have no theft or hijack cover" (OUTsurance); Budget states a tracker is not required on its comprehensive policies but strongly recommended (Budget).
Value paid on a total loss or theft: MiWay defines retail value as what you would pay a dealer for the same car (highest), trade as what a dealer would give you on a trade-in (lowest) and market as the average selling price of similar cars (middle) (MiWay). Your schedule names the one that applies.
Your duty to disclose and what happens if you do not (rule 11.4.2): answer every question about drivers, use, address and past claims accurately — non-disclosure is the second most common reason the ombud sees motor claims declined (NFO).

Within 31 days after the policy starts, the insurer must send you in writing the evidence of cover, comprehensive details of every excess, exclusion and limitation, how to claim and the facts it treated as material (rule 11.5). Read that document: it is what a claim will be judged against.

Your rights while the policy runs

Right	Rule
Cancel a new policy within 14 days of receiving it (term over 31 days, no claim); refund less the cover already used, within 31 days	Rules 4.1–4.4
Grace period of at least 15 days for a late premium (from the second month on a monthly policy)	Rule 15.1
Written notice within 15 days if a premium was not received	Rules 11.6.6–11.6.7
At least 31 days' notice of a premium or terms change the insurer starts, and of the renewal premium	Rules 11.6.4–11.6.5
At least 31 days' notice before the insurer cancels, except for non-payment and listed cases	Rule 19.2
Premium and excess must be fair; an excess may not be an unreasonable barrier to claiming	Rules 6.1–6.4, 17.10

Source: Policyholder Protection Rules (Short-term Insurance). The ombud adds that the grace period does not apply to the first premium, and that stopping a debit order ends the policy (NFO tips).

Write-offs: what happens to the car

OUTsurance explains that "a car is written off when the repair costs exceed its insured value, minus the salvage value", and that the insurer then pays the insured value, less the excess (OUTsurance).

The registration side is in the National Road Traffic Regulations (Gazette 38142): the title holder must notify the registering authority within three months after a vehicle becomes permanently unfit for use (form ADV) or is permanently demolished (form ADV1, with an affidavit or certificate of demolition) (reg 55). A vehicle deregistered as permanently demolished "shall not be registered and its parts shall not be used to build or repair any motor vehicle" (reg 13A). Ask the insurer which of the two applies before you accept a settlement, if you plan to keep or buy back the car.

Claims: the rules the insurer must follow

The insurer must accept, reject or dispute a claim "within a reasonable period" and tell you in writing within 10 days of deciding (rules 17.6.1–17.6.2). No fixed number of days is set for the decision itself.
A rejection must give reasons detailed enough to dispute, tell you that you may make representations within at least 90 days, describe the internal review, and give the ombud's details and any time-bar (rule 17.6.3).
It must answer your representations within 45 days (rule 17.6.5), and a time-bar must leave you at least 6 months after the 90 days to go to court (rule 17.6.8).
It must explain what a settlement is for and how it was calculated (rule 17.8.8), may not deny a claim without a reasonable investigation, and may not rely only on a polygraph (rules 7.1, 17.11).

What the ombud's cases show (NFO): a tracker required by the policy must be "in a good working order at all times" and that is your responsibility (tips); an insurer may prove drunk driving with evidence other than a breath or blood test (NFO); speed alone is not recklessness, but an exclusion for driving more than 20 km/h over the limit was upheld on tracker data (NFO); a rejection for worn brakes was overturned because the insurer had not shown they caused the accident (NFO); and an expired PrDP did not justify rejecting a hijacking claim because it was not material to the loss (NFO).

If your claim is rejected

Within the 90 days, write to the insurer with your reasons and documents, and ask for its internal review.
If it still refuses, complain to the National Financial Ombud (non-life division) — free, in writing, by phone or in person, with the policy number and correspondence (how to complain).
The NFO takes motor complaints up to R5 million, and a complaint may be dismissed after three years from when you became aware of it; receiving your complaint suspends any time-bar and prescription (NFO Scheme Rules).

More: insurance complaints and your rights as a policyholder. If you are comparing quotes through a comparison service, read how it works first: Hippo car insurance quotes.

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Frequently asked questions

What must an insurer tell me before I buy car insurance?

The excess and when it applies, the premium and how it can change, the significant exclusions and limitations, cooling-off rights, your duty to disclose and the ombud's details (PPR rule 11.4.2).

Can I cancel car insurance after signing?

Yes, within 14 days of receiving the policy, if it runs for more than 31 days and nothing was claimed; you get the premiums back less the cover already used (PPR rule 4).

Do I need a tracker for car insurance?

Only if the policy requires one. Where it does, the device must be installed, working and paid up: OUTsurance, for example, gives no theft or hijack cover otherwise, and the NFO treats a working tracker as the policyholder's responsibility.

What is the difference between retail, market and trade value?

As MiWay defines them: retail is what a dealer would charge for the same car (highest), market the average selling price of similar cars (middle), trade what a dealer would pay you (lowest). Your schedule says which one is paid.

How long does an insurer have to decide on my car claim?

A reasonable period, with no fixed number of days; it must then tell you in writing within 10 days, and give reasons and at least 90 days to answer if it rejects (PPR rule 17.6).

Who do I complain to about a rejected car insurance claim?

First the insurer, then the National Financial Ombud's non-life division, free, for amounts up to R5 million.