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Hidden Co-Payments in Young Driver Insurance South Africa 2026

By Navigate Financial Services (Pty) Ltd

What New Licence Holders (and Parents) Might Not Know About:

Getting your first driver’s licence at 18 is exciting, but South African roads come with financial pitfalls for young and inexperienced drivers. Beyond high premiums, hidden co-payments — known as excesses — can turn a minor accident into a major expense. Many families are unaware of these stacked charges until a claim hits.

The Standard Double or Triple Excess for Young Drivers

Insurers like Santam, OUTsurance, and MiWay apply multiple compulsory excesses when a driver under 25 or a driver with less than 2-3 years’ experience is involved in a crash, even if not at fault. Typical 2026 figures:

Excess Type

Typical Amount

When It Applies

Basic/Standard Excess

R4,500 – R8,500

All claims

Young Driver Excess

R3,000 – R6,000

Under 25

Inexperienced Driver Excess

R2,000 – R4,500

Licence <2 years, even over 25

Total Out-of-Pocket

R9,500 – R19,000

 

For example, a 20-year-old with a 6-month-old licence in a R40,000 fender-bender might pay R14,000 upfront before the insurer covers anything.

Co-Payments You Might Not Be Aware Of

While young and inexperienced excesses are common, lesser-known add-ons can surprise you:

  1. Unlisted Driver Excess: If the young driver is not named on the policy (e.g., a teen borrowing a parent’s car), an extra R4,000+ applies. This catches families who add kids post-licence without updating.
  2. Night-Time or Risky Condition Excess: Accidents after dark or in bad weather trigger additional charges, up to R5,000, as insurers deem young drivers riskier then.
  3. Imposed Excess for High-Risk Profiles: With a history of minor claims or traffic fines, insurers add R2,000 – R5,000. New drivers build this quickly with small mishaps.
  4. Towing and Storage Fees: Post-accident, these can hit R200 per day, not always fully covered by insurance –  adding R1,000+ unexpectedly.

These stem from stats showing under-25s in 5x more claims, per Road Traffic Management Corporation data.

Smiling couple inside a car with map, ready for an adventurous road trip.
Man with eyeglasses on head looks worried as he reads paperwork, expressing concern.

Tips to Minimize These Hidden Costs

  • Name all drivers on the policy upfront to avoid unlisted fees.
  • Opt for telematics (e.g., Discovery VitalityDrive) to prove safe driving and cut excesses by 30-50%.
  • Buy excess waiver add-ons (R150–R350 per month) to cover out-of-pocket hits.
  • Choose higher voluntary excesses (R7,500+) to lower premiums, but save for them.

Park securely and drive daytime to dodge condition-based extras.

Do not let a moment of celebration – handing over the keys to your newly licensed teen – turn into months of financial regret.

One small accident can easily cost your family R15 000–R25 000 in hidden co-payments that most parents have never even heard of until the assessor calls.

At Navigate Financial Services we have made it our mission to stop that phone call from ever happening.

Contact Navigate Financial Services today for free, no-obligation advice and we will show you exactly what excesses apply to your young driver and how to slash them — often by half or more.