Effects of public transport on car insurance

According to the MEC of Roads and Transport for Gauteng, Ismail Vadi, the Gautrain will drastically change road usage in the province, giving long-distance commuters an easier and more efficient means of transport, thus eliminating traffic. This should have implications for insureds on their car insurance premiums, as less vehicles and less driving time, means less material risk. Such commuters should contact their car insurance companies for a reevaluated insurance quote.

Car insurance and public transport

Road traffic volumes in Gauteng are in the region of 66 million kilometres travelled every day, with about four million vehicles on the road in the province alone. Half the roads in the province see more than 5 000 cars a day, while more than 30 percent of the roads bear 10 000.

The move on the part of government to introduce efficient and cheap means of public transport, such as the Gautrain and Bus Rapid Transport systems, seeks to improve such congestion. Commuters and citizens who make use of it should consider purchasing car insurance which is based on individual risk. Companies such as MiWay, OUTsurance and Discovery fit their clients’ vehicles with tracking devices to monitor driving behavior and thus a more customized insurance premium. The data collected by these devices includes distances travelled in a given month. The less one travels, the less their risk of accident and thus the less one pays in premiums.

Similar to this product, Hollard provide car insurance premiums according to the amount of mileage one does in a month. If you are such a commuter, then perhaps you should consider the Pay As You Drive option.

Should you require a quote for your vehicle insurance based on your individual driving habits, fill in our online form and insurance representative will contact you shortly.