Car insurance is one of those things you know you need but don’t particularly enjoy paying for. Like dental checkups or renewing your driver’s license, it’s not something you look forward to, but skipping it could cause chaos if things go wrong. What has always felt unfair, though, is how your insurance premium seems stuck in place—even as your car loses value year after year.
This is where King Price, a South African insurer with a reputation for shaking up the industry, throws in something a little different: decreasing premiums. At first, it sounds almost too good to be true—your premium actually goes down every month as your car depreciates. But how does it work in real life? Is it really saving drivers money, or is there a catch somewhere in the fine print? Let’s unpack it, with a mix of curiosity, skepticism, and a bit of storytelling from the perspective of someone who’s been down this road (pun fully intended).
The Old Way: Paying More for Less
Think about the traditional model for a second. You buy a car, and on day one, it’s worth, say, R300,000. Naturally, your premium is calculated based on that value. Fast-forward three years. Your car has seen school runs, dusty road trips, maybe even a bump in the parking lot at Woolworths. Its value is now closer to R200,000—or less.
Yet, your insurance premium? Barely moved. You’re still paying almost the same as when the car was new.
This mismatch feels a bit like paying for a full tank of petrol but only receiving three-quarters of it. Sure, the insurer will tell you that premiums cover more than just your car’s market value. They’ll point to accident risk, theft statistics, repair costs, and administrative overheads. And they’re not wrong. But still, it feels off. Why should you pay as if your car is a shiny showroom piece when it’s depreciating faster than a smartphone after its first software update?
King Price’s Pitch: A Premium That Drops Monthly
Enter King Price. Their big hook is simple: your premium decreases in line with your car’s depreciating value. In other words, if your car’s value drops every month, so does the amount you’re paying to insure it.
When I first heard this, my knee-jerk reaction was suspicion. Insurance companies aren’t exactly known for giving money away. So I asked around. A friend of mine in Joburg signed up with King Price a few years back for her Toyota Corolla. She told me something that stuck: “It’s the first time I felt like my insurer was on my side, not just taking my money.” Every month, she’d see her debit order shrink by a few rand. It wasn’t dramatic at first—maybe the price of a cappuccino at Mugg & Bean. But add that up over a year or two, and suddenly you’re saving hundreds, even thousands.
The psychology of it is clever, too. Even if the savings aren’t massive, there’s something satisfying about watching a debit order shrink instead of creep upward, as most bills tend to do. It’s like a small monthly reminder that you’re not being overcharged.
How the Numbers Work
So what does “decreasing premium” really look like in practice? Let’s imagine you’re insuring a car worth R250,000. Normally, your premium might hover around R2,000 a month, depending on factors like your driving history and location. With King Price, instead of sticking at R2,000 indefinitely, it might start at that level but then drop by R20, R30, or R50 each month as your car’s value depreciates.
By the end of the year, your premium could be a few hundred rand lower per month. Over several years, the cumulative savings could be enough to cover a service or two, or even fund a decent weekend getaway.
But here’s where nuance is important. The drop isn’t exponential. Don’t expect your R2,000 premium to magically halve in a year. The decreases are gradual and proportionate to your car’s value. Think of it as a steady trickle of savings, not a sudden windfall.
Why Other Insurers Haven’t Copied This
Now, the obvious question: if this model makes so much sense, why aren’t other insurers doing it?
The cynical answer is because it eats into their margins. A flat premium ensures they lock in steady revenue, regardless of whether your car loses R50,000 in value in the first year.
Another explanation may be the complexity it adds to their systems. Traditional insurers set premiums once a year and adjust only at renewal time. King Price, on the other hand, recalculates premiums every month. That requires more data, more processing, and a customer base willing to accept slightly fluctuating debit orders.
There’s also a branding angle. King Price has built its identity around being quirky and different—the insurer that “doesn’t take itself too seriously.” Their marketing often uses humor and bold campaigns, which aligns well with the “your premium goes down” promise. For other insurers, adopting the same model might feel like admitting they’ve been overcharging customers for decades.
The Human Side: Why It Feels Fair
Insurance is often an emotional grudge purchase. You pay and pay, but unless disaster strikes, you rarely see tangible benefits. That’s why decreasing premiums strike a chord with so many people—it feels fair.
I remember chatting with an Uber driver in Cape Town who swore by King Price. He said, “My car’s a tool, not a luxury. It loses value every day. Why must I pay the same price for it?” He liked the idea that his insurer acknowledged that reality instead of ignoring it.
That sense of fairness shouldn’t be underestimated. In a market where trust in insurers isn’t exactly sky-high, a small gesture like dropping premiums monthly goes a long way in building loyalty.
The Fine Print: What You Should Watch Out For
Of course, no insurance product is flawless. With King Price, there are a few things you should keep in mind before rushing to switch.
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Depreciation vs. Risk Factors
Just because your car is worth less doesn’t necessarily mean it’s cheaper to repair or less likely to be stolen. A 10-year-old VW Polo can be cheaper than a new SUV but is far more attractive to thieves. So while your premium drops, it doesn’t mean you’re guaranteed rock-bottom rates forever. -
Add-Ons Stay the Same
If you’ve bundled extras like car hire, roadside assistance, or household cover, those parts of your premium may not decrease at all. Only the portion tied directly to your car’s value is affected. -
Savings Plateau Eventually
Cars don’t depreciate forever. After a few years, their value levels off, and so will your premium reductions. Don’t expect your debit order to disappear entirely. -
Comparisons Are Still Key
Just because premiums decrease doesn’t mean they start cheaper. Another insurer might offer a flat premium that is still lower overall than King Price’s starting rate. It pays to get multiple quotes.
A Critic’s Take: Is It More Marketing Than Magic?
One could argue that decreasing premiums are as much about perception as they are about savings. The actual difference month-to-month can be modest, sometimes barely noticeable. If you’re strapped for cash, saving R20 in month two may not feel life-changing.
But perception matters. Watching your debit order shrink instead of swell creates goodwill. It’s a bit like loyalty programs that offer small rewards—they don’t always provide massive value, but they make customers feel appreciated. King Price has tapped into that psychology masterfully.
Still, skeptics might argue that the insurer is simply repackaging what should have been the norm all along. If cars depreciate, why should premiums remain fixed? From that angle, King Price isn’t giving customers a gift—they’re just doing what seems logical, while competitors stick to their entrenched ways.
So, Should You Sign Up?
Here’s my honest take. If you like the idea of transparency and feeling like your insurer is acknowledging reality, King Price may be a breath of fresh air. It’s particularly appealing if you drive a mid-range car that depreciates quickly in the first few years. You’ll actually see tangible savings.
But if you’re all about rock-bottom prices and don’t care about gimmicks, it’s still worth comparing quotes. Sometimes another insurer with a flat premium will beat King Price’s starting rate, even after several months of decreases.
For me, the appeal lies less in the exact rand amount saved and more in the principle of it. There’s something refreshing about not feeling like you’re paying yesterday’s price for today’s car. Even if the savings only cover a couple of cappuccinos, it’s still better than nothing.
Final Thoughts
King Price’s decreasing premiums are not a magic bullet, nor are they pure marketing fluff. They sit somewhere in the middle—a genuinely consumer-friendly tweak to an outdated insurance model, dressed up with a bit of clever branding.
It may not revolutionize your finances, but it does something few insurers manage: it feels fair. And when it comes to insurance—a product most of us resent paying for—that’s a win in itself.
If nothing else, it challenges the industry to rethink a decades-old formula. Maybe, just maybe, it nudges competitors to consider whether sticking to flat premiums really serves the customer. Until then, King Price stands out, not for reinventing the wheel, but for making it spin a little smoother.