A 3-point crash(less) course on car insurance for the 69% of Gen Zs who don’t yet have it

Young South Africans between the ages of 19 to 27 represent the next power generation of economically active citizens.

Armed with digital technology and unprecedented access to innovative financial products and services, Gen Zs are set to reshape the meaning of true financial wellness. But are they as financially savvy as they have the potential to be? When it comes to short-term insurance, it appears Gen Zs still have a lot to learn.

A Gen Z blind spot
According to local market research agency KLA^[1], despite having greater awareness about positive financial habits such as saving, only 31% of Gen Zs currently have car insurance. Considering Statista’s finding ^[2] that as of November last year, there are nearly 12 million vehicles on South African roads, this represents a considerable gap in adequate financial security. This is particularly true of younger, less experienced drivers who pose a greater risk on the roads.

For insurers like Miway, this knowledge gap speaks to the pressing need to inform young road users about the advantages that come with having car insurance. As Sherry Sibeko, Executive Head: Personal Lines at Miway explains: “We’re seeing a generation with incredible potential to take control of their financial futures. But without the right information and tools, that potential will remain untapped.”

Insurance providers need to meet Gen Zs where they are – digitally, culturally, and practically – to show them that short-term insurance isn’t just a grudge purchase; it’s a smart, empowering step towards long-term financial wellness and peace of mind.

Get onboard with a digital-first insurer
Speaking to the top ways Gen Zs can make car insurance work for them, Sibeko says that applying for (and managing) your car insurance may not be as admin intensive as you think.

With the move towards a more digitised economy, many South African insurers now offer online services that can help clients tackle aspects like submitting a claim, updating personal details and applying for specialised types of insurance. For digital natives like Gen Zs, this means less paperwork, less hassle and less time spent talking to contact centre agents.

“The Miway App is our way of reaching clients with a digital-first mindset. You can use the app to check details like your monthly premium, review your policy documents, activate emergency assistance and access online support.

“Leveraging online technology has also allowed Miway to translate our savings into savings for our clients, who can earn cashback rewards on their premiums, just for applying online,” says Sibeko.

Get insurance – with receipts
Gen Zs make buying decisions in ways that are vastly different to the way other generations do. Another KLA study^[3] found that as much as 70% of Gen Zs check product reviews before buying a product or service. This factor – referred to as ‘social proof’ – is one of the key motivating factors for why Gen Zs choose certain brands and businesses over others.

In an economy where trust is crucial to building long-term relationships; especially in the arena of financial services, this means that insurers need to deliver on their promises. “We’ve invested real time into understanding what matters most to this generation. It’s not just about offering insurance, it’s about showing up in ways that feel relevant, honest, and human,” says Sibeko.

In this regard, Miway often directs prospective customers to leading review site, Hellopeter, where the Miway brand has earned a performance rating of 4.68. With over 185 800 5-star reviews, Miway has consistently ranked among the top 5 insurers in South Africa.

Choose the cover that works for you
There’s no question about the fact that younger generations are up against some serious financial odds. In South Africa, the youth are faced with record-high levels of unemployment as well as the rising cost of living. It’s therefore understandable for Gen Zs to think of car insurance as being unaffordable. But, as Sibeko advises, escaping this ‘short-termism’ trap is one of the most important hurdles young people need to overcome.

“The cost of a single accident can far exceed months, or even years of premiums. Add to this the cost of not having access to your primary means of transport while you fund the repair or replacement of the vehicle out of pocket, and the impact can be financially devastating.”

For this reason, Sibeko encourages young people who are new to the insurance market to chat to a broker who can help them with premiums that are tailored to suit their budget. Products that include value-added services such as Miway’s WeDrive take-me-home service give young drivers added peace of mind, knowing they have safe transport options when they need them most. “This allows us to meet Gen Zs where they are financially – to help them grow, and to make sure their insurance products grow with them.

[1] https://kla.co.za/blogs/beyond-budgets-how-gen-z-is-redefining-financial-wellness
[2] https://www.statista.com/statistics/1546840/south-africa-number-of-vehicles-registered-by-category/#:~:text=Total%20number%20of%20registered%20vehicles%20in%20South%20Africa%202024%2C%20by%20category&text=As%20of%20November%202024%2C%20close,with%20around%20eight%20million%20registrations
[3] https://kla.co.za/blogs/banking-on-trust-how-south-african-genz-consumers-choose-their-financial-partners#:~:text=Gen%20Z%20values%20social%20proof,testimonials%20to%20showcase%20their%20credibility.&text=47%25%20of%20Gen%20Z%20trust,or%20using%20financial%20products%20effectively