Posts Tagged ‘payd’

Is the Gautrain changing travel patterns and car insurance needs?

SnipImage(25)On Carte Blanche on Sunday there was a small documentary on the ease and speed with which commuters can travel from Pretoria to the JSE in Sandton JHB by using the Gautrain. A comparison was made between the time and travel of driving with a Porche and travelling by train.

It appears that many people are travelling with the Gautrain on a daily basis, and this number is set to increase!

What will the impact be of increased accessibility to quality public transport in Gauteng?

I would like to share a few observations I have come across in the budget speech delivered by Ismail Vadi, MEC of Roads & Transport Gauteng. He made a few very important points in his speech on public transport and I would like to focus on some of them.

  • Impact and importance of Public Transport

“It should be evident to all of us that our public transport system impacts in a very real way on the lives of our citizens; no less than the provision of education or the rendering of health services. It has become an issue of intense public interest and concern. It is precisely for this reason that the Gauteng ANC, at its Provincial General Council held last week, resolved that an affordable, safe and reliable road and public transport network, based on an overall transport master plan, are essential for a vibrant global city-region.”

  • Traffic Volumes on Roads in Gauteng

“At the same time, traffic volumes on our roads are extremely heavy. In total, 66 million vehicle-kilometres – that is the total distance travelled by all vehicles in one day – are travelled by about 4 million cars every day on the roads in our province. This totals to 24 billion vehicle-kilometres annually. Over half of the provincial roads in Gauteng carry more than 5000 vehicles per day and 38 percent of the roads carry more than 10 000 cars per day.”

  • Need to preserve and Repair the Road Network

“These facts say something to all of us. It says that we must act quickly and decisively to preserve our road network. The Department, therefore, has taken a strategic decision to focus on repairing, maintaining and rehabilitating our roads, rather than focusing on constructing new roads. This we must do to guarantee safety to our motorists; and to minimise the excessive road reconstruction costs that we will incur over time if we neglect to repair them timeously”

  • Public Perception and Impact of Gautrain on Public Transport

“A public survey conducted in February this year shows that people in general are very positive about Gautrain. The opinion survey shows that:

- Gautrain is seen as improving and transforming public transport;

- its leadership is seen as having the ability to compete on an international level;

- 80 percent of respondents indicated that they are likely to use Gautrain; and that it has a positive, distinctive and recognisable brand perception.

Will improved Public Transport affect Car Insurance needs?

What is quite clear from the above comments is that Government is committed to providing and improving quality public transport. There is a need to reduce traffic congestion by improving public transport facilities and services, and an understanding that the success in doing so will enable thousands more to commute via train and buses.

As thousands of commuters may enjoy the benefits of public transport, many will travel less in their personal vehicles and may also seek to adjust their car insurance policies to that of policies developed around a Pay As You Drive structure.

We would like to invite vehicle owners to investigate the benefits of Pay As You Drive Car Insurance.

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There are effective ways to cut down on the cost of transportation!!

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What does a Blond do to cut down on the cost of fuel?

What do you do to counter the ever increasing cost of transportation? What is the cost of transportation? We could include in these costs the following:

-          Fuel

-          Vehicle maintenance – Cost of tyres, wear and tear and vehicle components to be replaced etc

-          Car Insurance

-          Time spent in traffic [ If we use the often quoted term “time costs money”]

South Africans counter the increased costs of transportation by doing the following:

-          Cutting down on unnecessary travel

-          Increased usage of public transport

-          Spouses travelling together and not in separate vehicles

-          Lift clubs and travel with colleagues to work

-          Working more from home by benefitting from the increased affordability and access to the internet.

There has been a significant move towards public transport in South Africa. The Gautrain and improved bus services in the metros with the launch of the BRT systems are attracting hundreds of thousands of new commuters.

As we drive less with our own cars we need to be reminded that this should have an impact on the risk of insurance claims from accidents as well! Consider a car insurance product that recognizes these reduces risks and that is designed around the distance that you travel.

Pay As You Drive is the insurance product that is designed with this in mind. We would like to advise road users to compare their insurance quotes with that of distance based insurance products!

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Better public transport will also deliver an opportunity for cheaper car insurance premiums!

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The Department of Transport should be commended for the efforts to improve public transport in South Africa. Even though many might regard recent developments as small steps, they are indeed much needed and they might prove to have a giant impact on road safety, the environment, economic development and financial stability.

The efforts to improve public transport is not only in line with the objectives as detailed in the Decade of Action for Road Safety, but is also aimed at reducing traffic congestion on our roads and the emission of CO2 gases.

More and more South Africans are using bus and train transport. Earlier today there were very positive signs for the Gautrain project as thousands of commuters travelled the new route between Johannesburg and Hatfield. Last year I took the Bus Rapid Transit System [BRT] from central Johannesburg to Soccer City and must admit to being highly impressed.

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MyCiti Bus Service in Cape Town

Two weeks ago I was equally impressed at seeing the MyCiti bus service in Cape Town and have been told that friends in Blouberg Beach have used this service to their satisfaction as well! Similar services are also rolled out in other provinces with feeder buses providing transport from the main bus stops.

A lesser obvious benefit, but a very important one in this challenging financial environment, is the benefit for these commuters in saving not only time and effort, but in other transportation costs as well!

Commuters need to monitor the distance travelled in their vehicles – and if such distance is significantly reduced through the use of public transport, they need to consider a Pay As You Drive car insurance option. Users of public transport can save on fuel and vehicle maintenance costs BUT ALSO on car insurance where the car insurance policy is structured around the distance that they travel!

Vehicle owners need to monitor their car insurance premiums and compare the premiums payable with the premiums they will be paying when the average distance travelled is reduced. Distance travelled is one of the most important parameters used in the calculation of Car Insurance Premiums!

Comparing insurance quotes remains the best way to finding cheaper car insurance premiums. We would like to advise that this be done yearly – and especially when there are significant changes in the driving behaviour of our insured vehicle owners!

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Pay As You Drive car insurance to benefit from changing work environment

a_change_work_environmentVehicle owners have very different preferences when it comes to make, model, colour and accessories. This individuality is not limited to their vehicles – it also stretches much further- – and we need to recognize this in aspects such as driving behaviour, driving risks and the manner in which they care for their vehicles!

Car insurance should also be able to recognize owner and driver individuality by the way in which premiums are calculated. Car Insurance should never be a one size fits all  – if you pose less of a driving risk and claims risk than your neighbour, you should pay less in car insurance compared to your neighbour.

In this post we would like to pay attention to one of the aspects that could reduce the distance driven and as a result – the claims risk!

Changing Work Environment, reduced driving and PAYD

It is generally accepted that the more and the further you drive, the more exposed you are to both accidents and vehicle loss! You share the road with more road users and road hazards and despite your own driving ability there are simply so many more threats.

Why is the work environment changing?

Advances in technology and increased connectivity are allowing professionals and businesses to interact 24/7 with one another without the need for long face to face discussions around a table in a fancy office. The internet has become faster, the cost of data has come down and with laptops, iPads, smartphones and other devices information can be shared swiftly and effectively.

It has also allowed many to move away from the corporate environment to do their own thing! It is not only the “stay at home moms” who discovered the benefits of working from home. Tax consultants, financial advisors, marketing professionals and many more are finding that they are well capable of building and maintaining a business on their own.

The internet and 24/7 online connectivity are allowing for many new businesses. Many of these businesses are web –based and can be managed from the office at home.

How does the changing environment impact on travel patterns and car insurance?

Many vehicle owners find that the changing work environment allows them to reduce their travels significantly. Small business owners find that they can often avoid hectic traffic congestion into the city by optimizing their homes into “home-offices”.  Not only can they save on expensive office rental, but also on the costs of transportation.

These costs include:

-Petrol

-Vehicle maintenance and service costs

- Costs of wear and tear of tyres, brake pads etc

- Costs of parking etc

It is most important to recognize that these savings should also extend beyond the above list to include your car insurance. If you drive less, a Pay As You Drive insurance policy will reward those drivers who drive shorter distances than other drivers. Those who work from home are likely to benefit from such a policy.

How much will I save with a Pay As You Drive Car Insurance Policy

As earlier indicated – every premium is based on your own driving behaviour. To find how much you will save there is only one way to find out – request a car insurance quote and compare this to what you are paying now!

You might find that you may not only smile at reduced traffic congestion- but also at a reduced car insurance premium!!

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Ford Bakkie in US driven 1.6m km in only four years!!

Ford bakkie USOn the Car Insurance Blog we have given much attention to advice on finding the correct insurance to meet your specific needs.

We have also advised vehicle owners who are not driving that much to consider a Pay As You Drive Insurance product. This will allow them to pay a fair insurance premium for the distance that they do travel!

Pay As You Drive insurance is perfect for those vehicle owners who travel shorter distances in their vehicles – or who have a specific vehicle that is not driven that much. I have made reference to my mom who has driven her VW Jetta only 11,000 km in three years and even more significant -has only driven the VW Beatle 78,000 km in 32 years!!

Some Vehicle owners drive far and wide!!

There are however also those who really drive long distances! I have come across a very interesting story on Wheels 24 titled “Ford bakkie’s amazing mileage” and would like to quote a few facts from this rather amazing travelling record:

• Floridian Phil Marsella’s is the owner of a four year-old Ford F-250.
• The petrol powered F-250 has found the upper limit of Ford’s digital odometer’s endurance by tallying 1.6m km in only four years of ownership.
• Ford never expected F-250 owners to surpass six figures in terms of mileage. As such the digital odometer could not record Marsella’s journey beyond the 1m mile mark; it stopped working at 999 999 miles.
• Marsella spends an inordinate amount of time behind the F-250’s wheel. In fact, he averages around 8 000km a week – akin to commuting from Bloemfontein to Pretoria daily for work…
• Phil Marsella delivers purebred Greyhound racing dogs to various events around the United States.

How much does this driving cost?

Factor in the service costs and consumables (brakes and tyres) and it is hardly surprising to find Marsella’s F-250 having cost him a chunky R480 000 to run in four years of ownership – excluding his fuel bill.

Unfortunately there are not more details on the fuel costs – or the car insurance premiums paid – but we can bet that the insurance product in this case is not a Pay As You Drive insurance product! We could argue though that Phil Marsella deserves some credit for his rather considerable driving experience!!

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How do I find the best car insurance for multiple vehicles?

car-blog-images-smallOften when we consider car insurance we only think of a single specified vehicle and the insurance for that car.

The best about car insurance premiums is that there is no “one size fits all” – and every single client and his vehicle have different characteristics which affect the payable car insurance premium!

Different characteristics and different risks of vehicle use

Even if twins were to be of the same gender and drive the exact same make of vehicle, they might have to pay different car insurance premiums. There are simply too many other variables such as:

- The area where they drive and risks to both accidents and crime in that area
- Where and how they park the vehicle
- The occupation of the driver and the purpose of use of the vehicle
- The distance that the vehicle is driven
- The driving and accident record of the driver
- The characteristics of other regular drivers of such a vehicle, etc

Multiple vehicles have different characteristics and purposes of use

In many households we find more than one vehicle. These vehicles are seldom similar in make and value – and even less similar in purpose and use. We often find a more expensive “long distance” vehicle and a smaller, less expensive “city shuttle”.

The more expensive vehicle is more likely to be used on the long and open road, travelling farther and driven mostly by the head of the household. It should resemble a cleaner vehicle owning the the number 1 spot in the enclosed garage at home!

The smaller vehicle is more likely to be driven by everyone – and often will also be the vehicle to be entrusted with the young drivers at home. This vehicle will seldom travel the long distances – and used more often to get in-and –out of the city. It might also be parked outside the house and not in the enclosed garage…

It should be clear from this brief illustration that these vehicles will differ significantly in the car insurance premiums required to insure them!

Knowing your options to insure multiple vehicles

In making financial decisions such as the best car insurance – the best advice to follow is getting to know your options. There is only one way to decide on the best car insurance – and this is to compare different options with one another.

We would like to alert vehicle owners to a few aspects that they should be aware of when getting to know their options.

- Insurance products for multiple vehicles

Many car insurers will reward clients for having more than one vehicle on the same policy with such an insurer. They might offer to provide significant savings not only to have more than one vehicle on your short term insurance policy –but also to add your household insurance etc.

You might like to test this by requesting quotes from several insurers with separate policies and where the vehicles are combined within one policy.

- Significantly different vehicle characteristics requires closer investigation

It might be important to consider that the unique characteristics of vehicles might make it more costly to combine these vehicles on one policy. These could include:

- The one vehicle is a classic car/ antique or special vehicle
- The one car could present significantly higher risks on account of the purpose of use or characteristics of the driver.

It might well be possible to find cheaper car insurance for one vehicle at a specialist insurer – an insurer that specializes in sports/ classic cars, 4×4 vehicles etc

- Pay As You Drive car insurance for Reduced Travelling

If one of your vehicles only travels short runs – you would need to consider a Pay As You Drive car insurance product. There could be significant savings on insuring such a vehicle if it is only ensured at a premium for the distance that you drive. This is also called Distance Based Car Insurance, Usage Based Car Insurance and Telematics Based car insurance.

Conclusion and Advice

We would like to urge vehicle owners to get into the habit of comparing car insurance offerings. Car Insurance companies are highly competitive and are asking you for the opportunity to offer a quote. Requesting these quotes will allow how to Know your Options.

You will only find the best car insurance for multiple vehicles by making an informed decision. Consider different options presented by different providers. Rather take an hour or two extra to make the decision that will be both affordable and the correct decision!!

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Car insurance could reward drivers who avoid late night driving

Written on September 27th, 2010 by jonckie@arrivealive.co.za
Categories: Car Insurance Advice, Pay As You Drive

Reward-those-who-avoid-driving-at-nightIt has been said often that driving at night is a risky time to be on the roads.

Not only are their hidden dangers such as animals next to the road or drunk drivers stumbling across the road – but also intoxicated drivers and young drivers trying to impress their friends with their driving skills!

Young drivers are the group most at risk. Young male drivers struggle most to find affordable car insurance  – and the accident statistics confirm that they tend to be involved in the most serious car crashes. Contributing factors include lack of driving experience, intoxicated driving, distracted driving and speeding.

We would like to share some interesting insights on the % of fatalities per age group:

Fatalities per age group

The fatal crash statistics in South Africa confirm the dangers of night driving! The most dangerous time to drive appears to be at weekends and between 18h00 – 21h00. I would like to quote from the information released by the Road Traffic Management Corporation:

Fatal crashes per time of dayThese risks are not unique to South Africa. There has recently been a proposal in the UK from a Cardiff University expert to introduce a graduated driver licensing (GDL) system for all young newly-qualified drivers as unenforceable.

Dr Sarah Jones’ suggestion, which is already in use in parts of the US, Canada and New Zealand, would ban young drivers from the roads at night; from carrying teenage passengers and consuming any alcohol, for a fixed period.

Some car insurers believe that Pay As You Drive insurance policies could provide a better incentive for drivers to avoid night driving. Pay As You Drive is usually seen as “distance based insurance” – calculating the distance that you drive through an odometer reading and then charging a monthly car insurance premium for the distance that you have driven.

There are now also advanced tracking tools that are able to record the exact time and region where drivers are driving. This data can now also be reported to car insurers.

It is suggested that some of these tools as part of PAYD could provide an incentive not to travel at the most risky times of day and could even be more effective at cutting the accident rate among young drivers than banning them from the road at night.

We would like to urge vehicle owners to be conscious to the possible car insurance savings if they reduce their travels. Even though your insurer might not require info such as the time and area where you are driving – you could be rewarded for avoiding unnecessary late night driving.

View the Pay As You Drive section on the Car Insurance Blog for more info on PAYD

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Pay As You Drive car insurance rewards those who avoid unnecessary travels!

Vehicles on roadAre you the average traveller – or do you believe you drive a bit less than the average driver? This is a question I have asked myself this week as I prepare to take my car for the 135,000 km service.

I bought my VW Polo 5 years ago and travel often between Bloemfontein and Johannesburg on business. I believe these business travels makes be a bit of an “above average” driver when considering driving experience.

The driving distances travelled by my mom in Oudtshoorn however makes for far more interesting reading. She travels in 2 vehicles – a 2007 VW Jetta and a 1978 VW Beatle. When my dad passed away in March 2007 he left her with the VW Jetta which had only 300km on the clock. Today this Jetta has travelled just more than 11,000km’s.

The reduced travelling my mom does is even better reflected with the VW Beatle. This vehicle is in immaculate shape and has just over 70,000 km’s on the clock despite having been driven for 32 years!

How does reduced travelling affect car Insurance?

Neither the VW Jetta or VW Beatle described above have been in an accident, and are much less likely to be in an accident than my VW Polo [which has been in an accident].

Reduced driving equates to reduced exposure to risks on the road. Reduced exposure to risks on the road should result in a reduced risk of accident claims – and this should be reflected in your car insurance premium!

It is always important to consider all the contributing factors to the premium payable under the car insurance policy – and driving distance is definitely one of these!

In the scenario described above the savings might not be as significant as my mom is now 70years old and her age will be a factor adding upward pressure on the car insurance premium. Had she however considered a Pay As You Drive car insurance 10 years ago – she might have saved a significant amount on her car insurance premium!!

Conclusion and Advice

It is important that we are aware of the factors that affect our car insurance premiums and that we reflect on them from time to time. Not only may significant life changes affect how much we drive but also how exposed we are to health and other risks.

We should not complain about rising car insurance premiums if we do not investigate the possibility that there might be car insurance product that better meet our needs and are more affordable. Pay As You Drive Car Insurance is one of these products that you need to consider and compare with your existing car insurance – especially if you believe you travel less than the average driver on our roads!!

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Pay As You Drive recognizes variety of risks on our roads!!

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Pay As You Drive car insurance is often described as the best car insurance product for people who travel less. We have given much attention to how life changes affect the way and the distance that we drive – and Pay As You Drive or “distance based” insurance recognizes that travelling less results in reduced risks to vehicle accidents.

But what are these risks and contributing factors to road accidents?

I have found a nice illustration of road safety risks in the Eastern Cape – this graphic illustrates clearly many of these risks. We can categorize them in three groups:

• Human Factors
• Vehicle Factors
• Environmental Factors

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When a vehicle owner does not drive that much – he /she is less likely to be exposed to many of these risks – such as large animals and antelope crossing the road, driving around sharp bends in mountain passes etc.

We would like to invite visitors to view the RTMC Crash Report for 2009 to gain an even greater understanding to the causes and contributing factors of road crashes in South Africa.

If you believe that you are seldom exposed to all these road safety risks since you don’t drive long distances – perhaps it is time to have your car insurance reflect reduced risks with reduced car insurance premiums!!

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Pay As You Drive is perfect to insure that classic car!!

SnipImage(16)Many families have a “special” car – a car that is inherited from a grandparent and which has special sentimental value. It might not qualify as a true antique – or have a special financial value – but it might be of significant value for people whose lives developed around that vehicle.

It is important to recognize that classic cars that can be described as antiques or sports cars would require special attention when their owners are considering car insurance. These vehicles are usually much higher in value and more difficult to repair once damaged. There are insurers who specialize in these classic cars – and it is best for the owners to shop around and consider these specialized insurers!

Classic cars and car with sentimental value

What we would like to refer to are those vehicles with a significant sentimental value to their owners. I grew up with such a vehicle – a golden yellow Volkswagen Beatle manufactured in 1986. This vehicle has not travelled far and belonged to my grandmother. It has been kept in immaculate shape and when it goes on the road it makes the heads turn!

Even though several vehicle collectors have offered to purchase this vehicle – the sentimental value has always weighed more to my mom than the money she could have made by selling the vehicle.

Many other families have a similar vehicle in the garage – and need to consider how to ensure such a vehicle. These vehicles are usually well cared for, well maintained and kept in closed garages. They are not driven much and when they are driven –it is with the utmost respect and caution!

These vehicles will fall perfectly in the category of vehicle to be insured with a Pay As You Drive car insurance policy. If you have a vehicle that is not driven every day or driven only short distances – it might be best to consider a policy that offers car insurance premiums based on the distance that you travel!

The odometer reading will determine the price that you need to pay for your car insurance. This will be a fair reflection of the risks to vehicle loss and damage.

We would like to advise that vehicle owners compare car insurance quotes to ensure that they are only paying what is a fair premium to cover the risks that they experience on our roads!

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