South Africans looking to buy a vehicle should understand the insurance costs they are likely to pay on a particular make and model, as there could be significant variations, even on vehicles of the same value.According to Debbie Donaldson,Business Unit Head of Affinity at Pinion Insurance Brokers, - an Aon Group Company, few people realise it is not just the replacement cost of a stolen or written off vehicle that determines the level of premium on that  particular make and model, but also the average cost of repairs.

She says that due to the fact that a large proportion of insurance claims on vehicles in South Africa at present are due to accidents, the cost of repairs can account for significant differences in the premiums between various makes and models.

"Technology imbedded in components of the vehicle creates driver value but also comes at a cost," says Donaldson.

Donaldson warns imported vehicles can also be very expensive to repair, with many requiring parts to be brought into the country. "As part of your purchase decision it is important to obtain this information as it may affect your service experience and repair experience in the event of a claim," she says.

She also highlights that accident rates for specific vehicle makes and models play a part in driving up premiums for owners. "Some models of high-performance cars tend to be driven by younger markets, which as a group have a higher accident rate. Cars in this bracket will often have a higher premium," she explains.

Insurers also look at a car's power-weight ratio when calculating premiums, as this is a good indication of the speeds that it is likely to be driven at. Therefore a model of car driven by a younger market that has a high power-to-weight ratio is therefore even more likely to have a higher premium.

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