Few would have suggested that the 2010 FIFA World Cup would have a positive impact on the car insurance industry. The expectations were mostly aimed at increased tourism and benefits for the hospitality industry.
The planning and effort that have gone into making possible the reliable and safe transport of football spectators do however also present financial benefits for the insurance industry – especially for PAYD – Pay As You Drive car insurance! In this post we would like to reflect on the World Cup benefits for public transport and why vehicle owners will have to consider PAYD insurance products.
2010 FIFA Football World Cup and Public Transport
According to FIFA, a total of 3.1 million spectators attended the 64 matches of the 2010 tournament. This excludes the millions of people who travelled to the fan fests, public viewing areas and other entertainment centres to watch the matches.
In just one month, millions of fans criss-crossed South Africa – a country three times the size of Germany- with the majority of them using public transport, mainly taxis, buses and trains.
The Department of Transport and other road safety authorities are pleased with an absence of major accidents or incidents. Years before the World Cup it was clear that access and mobility was going to be a challenge in hosting the 2010 FIFA World Cup. South Africa however rose to the challenge and transport moved smoothly!
How were safe and reliable transport made possible?
Public transport formed the backbone of transport plans for the 2010 FIFA World Cup. Government invested billions of rands to ensure a safe, efficient and reliable public transportation system for the World Cup. This investment included customer-focused and world class airports, upgraded train stations and refurbished coaches to luxury buses and integrated rapid public transport networks such as the bus rapid transit system.
The Transport Minister emphasized that there is a need to sustain the momentum started before the 2010 FIFA World Cup to improve public transport.
“Public transport came to the fore during the World Cup and us middle-class car users have began to realise that actually it is more convenient sometimes and that attracted new customers. We have to hold onto that,” said Jeremy Cronin, Deputy Minister of Transport.
The World Cup, Public Transport and the impact on Car Insurance
Before the World Cup most vehicle owners never considered getting to their destinations with public transport. Either there were not effective train and bus transport – or these modes of transport were regarded as unsafe!
With the launch of the Bus Rapid Transit system, the Gautrain and an increased focus on safety on trains – public transport has now become a viable option!! More and more South Africans travel shorter distances to train and bus stations and enjoy safe public transport to their destinations and places of work.
These benefits should however not be limited to safety and comfort! If you use public transport more and drive less with your vehicle – you should pay less for your car insurance!! This is why more vehicle owners will consider PAYD.
What is Pay As You Drive Car Insurance?
Pay-As-You-Drive (PAYD) Vehicle Insurance suggests that a vehicle’s insurance premium is based directly on how it is driven during the policy term. This insurance is also referred to Distance-Based, Usage-based, Mileage-Based, Per-Mile Premiums and Insurance Variabilization.
We can expect that increased usage of public transport will highlight the benefits of this car insurance product. It is only fair that your car insurance premium is reduced when the distance you travel with your car is reduced as well!
We would like to urge all vehicle owners to compare their existing car insurance premiums with the amount they would need to pay with a PAYD insurance product.
Do not pay more than necessary – Pay only what is fair!!