Used car prices in South Africa are soaring – and it’s impacting your insurance

[BusinessTech]

Used car prices in South Africa are soaring – and it’s impacting your insurance

The demand for used cars has exploded since the start of the pandemic, thanks to a global semiconductor and microchip shortage, which has negatively impacted the availability of new cars. This has also led to soaring prices for second-hand cars, and now insured motorists could be paying the price.

 

[Dan C]

bloody semiconductors !

 

[Johnatan56]

And in moderately near future: most manufacturers are removing their cheapest cars from their line-ups, mostly due to new efficiency and safety standards, makes the margins too slim.
Because of that, average new car price will go up, which will then trickle into second hand market and make those cars increase in value as well.

Right now another issue is that all manufacturers are putting quite a premium on electric/battery cars as well, question will be how long till come down in price.
Think LFP will help bring down another 10-15% or so hopefully, but that's still going to keep entry level quite high (though again, entry level right now is inflated, checking price of VW up, etc.).

 

[Hemi300c]

"Comprehensive insurance covers a great many things – some of which you may never have considered as being hazards to your vehicle; Natural Disasters, Falling Objects, Fire, Theft and Civil Disturbances."

Civil disturbances cover, Sasria, is available even if you don't insure your car.

One would think that this insurer could explain things clearer and more accurately for the layman.