Car insurance should provide financial protection and peace of mind, but it can feel more like a headache for many South African drivers. Delays, unexpected costs, and unclear policy terms often lead to frustration – especially when you need to get your car back on the road after an accident.
By understanding the common car insurance issues drivers face, you’ll be able to choose a reliable insurer, avoid unnecessary stress and enjoy a smoother experience.
Long Waiting Times for Claims
Few things are more frustrating than waiting weeks and even months for a car insurance claim to be processed. Whether it’s minor damage or a total write-off, long delays in repairs or payouts can leave you stranded. The usual culprits? Administrative backlogs, excessive paperwork, and lengthy assessments by insurers.
How to Avoid It
- Choose an insurer with a strong track record of efficient claims processing – customer reviews on platforms like Hellopeter offer great insights.
- Look for a provider with a dedicated claims team that prioritises fast turnarounds.
- Ensure your policy includes clear timelines for claim processing so you know what to expect.
Automated Support Instead of Human Assistance
Many insurers rely on chatbots and automated responses to cut costs, which can be frustrating – especially when dealing with an urgent or complex claim. AI has its place, but when it comes to personalised support, nothing beats speaking to a real person who understands your situation.
How to Avoid It:
- Test an insurer’s customer support responsiveness before signing up – call their helpline and see how quickly (and effectively) they assist you.
- Look for an insurer that offers real-time human support via email, chatbot and phone, so you can choose what works best for you.
Poor Customer Service
Delayed responses, unanswered emails, and long hold times can worsen a bad situation. Some car insurers also shuffle customers between multiple departments, making it difficult to get clear answers.
How to Avoid It:
- Research customer satisfaction ratings before choosing a car insurance company to see how they handle complaints and claims.
- Read online reviews to check for reports of poor service or long wait times.
- Choose a provider that values clear communication and fast resolutions over profit-driven delays.
Hidden Terms and Exclusions
Many policyholders only discover exclusions and hidden clauses when they try to file a claim. Policies may contain strict conditions for damage coverage, hefty penalties for car modifications, or restrictions on where repairs can be done.
How to Avoid It:
- Read the fine print carefully before signing any policy, and ask if you don’t understand. Look for insurers who stand out for their clear and transparent communication.
- Understand the differences between comprehensive and third-party insurance – not all damage to your car may be covered, especially if someone else was driving it.
- Ask for a clear breakdown of exclusions so you’re not caught off guard.
High Excess Fees and Unexpected Premium Increases
A car insurance claim should bring financial relief, not a shock. However, many policyholders only realise their excess is too high when they need to claim, making minor repairs unaffordable out of pocket, while others experience sudden premium hikes without warning.
How to Avoid It:
- Ask about fixed premiums and reducing excess options to keep costs predictable.
- Read your policy thoroughly and ask when and why your premium might increase.
Insurance Not Covering Outstanding Car Loans After a Write-Off
A total loss accident is stressful enough, and then realising your insurance payout doesn’t cover your remaining car loan can make things even worse. This often happens when policies exclude credit shortfall protection, leaving you stuck paying off a car you no longer have.
How to Avoid It:
- Check whether your policy includes credit shortfall protection – this covers the gap between your insurer’s payout and the amount you still owe the bank.
- Ask how total loss claims are handled before signing up.
Difficulty Cancelling or Changing Policies
Some insurance companies make it difficult to cancel or modify your policy, enforcing penalties, excessive paperwork, or long waiting periods – whether you’re switching providers or selling your car.
How to Avoid It:
- Choose a provider with flexible policy terms that adapt to your needs.
- Read the cancellation policy before signing up to avoid unexpected fees.
Know What You’re Responsible For
While your car insurer provides protection, you are responsible for understanding your policy and providing accurate information. Failing to disclose details – such as previous accidents or car modifications – can lead to claim rejections or delays.
Car insurance companies assess risk based on the information you share, so inaccuracies, even unintentional ones, can result in reduced payouts or legal action.
How to Take Responsibility
Many disputes handled by the ombudsman for short-term insurance stem from misunderstandings that could have been avoided with proper research.
So, always read the terms and conditions, clarify exclusions before signing up, and update your policy when circumstances change (like selling your car or moving).
Choosing the Right Car Insurance Provider
Avoiding these common pitfalls starts with choosing a car insurer that values transparency, efficiency, and customer service. For car insurance that aims to protect you, not frustrate you, get a quick quote online today.
This article aims to provide South African motorists with information about common car insurance issues. However, it’s not a complete list, so always do your own independent research.
Get a quote for affordable Comprehensive car insurance for fixed premiums*, reducing excess*, and top-tier service. T&Cs apply.
Always get professional financial advice from a certified financial advisor to ensure you select the appropriate financial services product.
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– Arrive Alive (@_ArriveAlive) March 26, 2025