If you’re planning a building project in South Africa, Contractors All Risk (CAR) insurance is necessary either by contract or as a financial safety net that protects your work in progress, your materials, and your liability if something goes wrong on site. But unlike car or home insurance, there’s no flat rate. What you pay depends entirely on your project.
The Short Answer on Price
Premiums can start from as little as R375/month or R4,500.00 as a once-off payment. Every insurer applies a minimum premium regardless of job size – so even a modest project attracts a base cost.
Beyond that, your premium is calculated individually. Here’s what drives it up or down:
Project value is the biggest factor. Larger contracts mean more materials, longer timelines, and greater exposure – so the premium scales accordingly.
Type of work matters too. Excavation, demolition, blasting, thatch construction, construction of bridges over water, structural alterations, and work near existing structures are all considered higher risk and priced accordingly.
Site conditions play a role insurers take seriously. Flood zones, unstable soil, high-theft areas, and poor site access all push premiums higher.
Contract requirements – particularly standardised contracts like JBCC or FIDIC – often specify minimum cover limits or liability amounts, which feed directly into your premium calculation.
It is possible in certain instances to opt for a higher excess to reduce the overall rate.
Once-Off vs. Annual Policy: What's the Difference?
The structure of your policy also affects how it’s priced.
A once-off CAR policy covers a single contract. The insurer looks at that project’s declared value, scope of work, duration, location, and risk profile – then calculates a premium for that contract period alone. Simple: one project, one rate, one premium.
An annual CAR policy works differently. Here, the insurer applies a rate to your estimated annual turnover; while also factoring in the maximum contract value you’d have at risk at any point during the year. Turnover reflects your overall volume of work; the maximum contract value tells the insurer how large a single exposure they might face.
In short:
- Once-off CAR = rate applied to one project’s declared value
- Annual CAR = rate applied to annual turnover, with maximum contract value as a key pricing limit
Don't Fall Into the Price Trap
It’s tempting to go with the cheapest quote. Don’t. A lower premium that excludes a critical risk doesn’t save you money – it leaves you exposed precisely when cover matters most. Compare what’s included, not just what you pay.
We at CivilSure believe insurance is a contract where you pay a small known cost to protect yourself from a large known cost
What Does CAR Insurance Actually Cover?
