Digital insurance platform, Naked, has released new data showing that young South African drivers are gravitating towards value-for-money vehicles as the cost of living continues to rise. Based on insights from Naked’s customer data*, the analysis shows that younger South African drivers are prioritising comprehensive insurance despite ongoing cost pressures.
Naked analysed data from two equivalent 12-month periods — July 2022 to July 2023 and July 2025 to July 2026 — to understand car purchase and insurance choices among customers aged 28 and younger.
“Buying a car remains one of the biggest financial decisions many young South Africans make,” says Sumarie Greybe, co-founder of Naked Insurance. “Our data suggests younger motorists are making pragmatic choices about what they drive, favouring affordable, reliable vehicles while continuing to prioritise comprehensive insurance to protect what is often their most valuable asset.”
Practicality is driving buying decisions
Although the findings reflect Naked’s customer base rather than the South African car or car insurance market as a whole, the data offers a snapshot of how young motorists are balancing affordability, practicality and financial protection at a time when buying and running a car remains one of the biggest financial commitments one can make.
Volkswagen remains the most popular vehicle brand among Naked’s younger customers, retaining the position it held three years ago. Suzuki, meanwhile, has shown strong growth, climbing from third to second place over the same period, with more than one in eight younger Naked customers now insuring a Suzuki. Its rise in popularity reflects the growing appeal of practical, affordable cars at a time when budgets are under pressure.
The average insured value of vehicles owned by customers aged 28 and younger increased by approximately 22%, from R208,000 to R262,000 over the three-year period. This isn’t a surprise given the combination of general vehicle price increases and changes in the mix of models and types of vehicles customers insured over the period. The average retail value of a Suzuki is 12% lower than that of the VWs quoted on by young drivers.
Comprehensive insurance is near-universal
Despite affordability pressures, comprehensive insurance remains almost universal among Naked’s younger customers. Today, 98.9% of Naked customers aged 28 and under choose comprehensive car insurance, virtually unchanged from 98.5% three years ago. Across all age groups, comprehensive cover remains the overwhelming choice for Naked customers.
“We expected to see some downgrading to third-party cover as cost pressures built up,” says Greybe. “We haven’t. Young customers are sticking to full comprehensive cover and finding ways to make the numbers work. In fact, they take out additional protection with around one in five young Naked customers taking out shortfall cover.”.
Shortfall cover protects against the difference between a financed vehicle’s outstanding loan balance and its insured value if it is written off.
Younger customers do, however, appear to be cutting back on certain optional benefits and accepting higher excesses. Fewer young drivers are adding the car hire benefit to their policy, down from 19.2% three years ago to 14.9% now. The average excess of young drivers on Naked’s platform has increased from an average of R5,500 three years ago to R8,000.
“Younger customers appear to be making deliberate trade-offs – choosing more affordable vehicles, retaining comprehensive cover, and adjusting optional benefits or excesses in ways that may help them manage their monthly costs,” says Greybe.