While almost half (47%) of South Africa’s Generation Z (aged 19–27) have funeral cover, less than a third (31%) have car insurance and fewer than a quarter (23%) have insured their cell phones[1].
According to Nomvula Nxumalo, Executive Head for People and Transformation at Miway, these findings from local market research agency KLA point to a considerable gap in short-term insurance coverage and knowledge among young South Africans.
“For many young South Africans and first-time earners, there is a clear knowledge gap when it comes to short-term insurance,” she says. “Too often, the value of short-term insurance only becomes apparent after something has gone wrong, whether that’s a car accident, a stolen phone or unexpected damage to personal belongings.”
At its core, short-term insurance is designed to protect the things you use and rely on every day. Unlike long-term products such as funeral cover, which are often prioritised due to cultural or family expectations, short-term cover is about managing everyday risks that can have an immediate financial impact.
“Your first salary often comes with competing priorities, from helping at home to covering your own expenses and lifestyle costs,” Nxumalo explains. “Insurance may not always feel urgent in that mix, but it plays a critical role in protecting what you’ve worked hard to achieve.”
For young drivers in particular, car insurance is one of the most important considerations. Beyond being a legal requirement in certain financing agreements, it provides protection against damage, theft and third-party liability, which can otherwise result in significant out-of-pocket costs.
Similarly, items like smartphones and laptops have become essential tools for work, study and daily life. Losing or damaging these devices can be disruptive and expensive to replace without cover in place.
Nxumalo adds that understanding how insurance works is just as important as having it. “It’s not only about having a policy, but about knowing what you’re covered for, what your excess is, and what is excluded. That understanding helps you make better decisions and avoid surprises when you need to claim.”
Importantly, she notes that insurance does not need to be complex or inaccessible. Digital platforms and simplified products are making it easier for younger consumers to get cover that suits their needs and budgets.
“The earlier you start engaging with insurance, the more confident and informed you become,” she says. “It allows you to build good financial habits and approach risk in a more considered way.”
As young South Africans enter the workforce or begin managing their own finances, Nxumalo encourages them to see insurance not as an unnecessary expense, but as a practical tool for financial resilience. “Insurance is ultimately about protecting your progress – and when you understand this, you’re better equipped to make choices that safeguard both your present and your future,” she concludes.