In this month’s article we share some changing trends in car insurance . Digital innovation and the pandemic has reshaped how we live, work and drive. Thanks to digital technology, you can benefit from better pricing, claims management, more transparency and more convenience in your insurance experience. And things are only going to improve as new digital innovations come to market. Here are some of the trends we expect to see unfold in car insurance over the year to come: 1.Trends in vehicle ownership and getting about In late 2021, fuel prices reached record highs in most countries. South Africa was no exception; after breaking through the R20 mark for the first time in December, the fuel price keep rising and have hit another record high as oil and gas costs soar amid fears of a global economic shock from Russia's invasion of Ukraine. Petrol prices are climbing, money is tight, and Uber offers a cheap and reliable way to get around if you’re not commuting every day. Following the hard lockdown in 2020, many families are wondering whether they really need two cars in the driveway. Surprisingly with most employees forced to work from home had a better outcome than companies and employees could have hoped for. Productivity, work life balances and the hybrid module worked out so well that many companies and people are not planning a full-time return to the office. Several studies over the past few months show productivity while working remotely from home is better than working in an office setting. On average, those who work from home spend 10 minutes less a day being unproductive, and are 47% more productive. Now that we’re not driving around as much as we used to before the pandemic and rising petrol prices, it’s a good time to rethink car ownership. More and more people are downsizing their second car to a smaller and less costly vehicle, delaying the replacement of their car, or even selling one of their cars because they don’t drive that much anymore. And if you decide not to ditch your second vehicle, you’ll want to get an insurance policy that lets you pay less during the times you’re not driving a lot. Daberistic can help you get the best option. 2. Online car shopping and everything that goes with it According to World Wide Worx, South African ecommerce retail sales totalled R30.2 billion in 2020 – more than double the R14.1 billion achieved in 2018. The explosive growth is largely thanks to Covid and social distancing, together with accelerated investment in the technology that enables ecommerce. Now that people are more comfortable with shopping online for groceries, they’re also more interested in buying larger things like cars and insurance via a website or app. We can expect exciting developments in online car retail in South Africa in the next year or two. We may see online dealers and marketplaces make it simple for you to compare financing offers, vehicles and insurance, then get it all in one place. In future, you could complete a car purchase online, from researching your options and applying for a loan, to ordering the car and getting insurance cover. One of Daberistics’ car insurance consultants can assist you easily online. Perhaps you’ll shop for cars by reading reviews and viewing ultra-high-definition videos, only booking a test drive once you’ve chosen a car and want to confirm your decision. This has the potential to put you in complete control of your experience – car dealers, lenders and insurers will all need to up their game in terms of pricing, convenience and transparency to win your business. 3. Mainstream Digital Insurance While insurance had previously lagged behind many other industries in giving consumers access to convenient digital processes, the last year or two has seen mass adoption of pure online insurance offerings internationally. South Africa has been no exception. With digital insurance providers using automation and self-service to drive down overheads and operate efficiently, the result is a significant cost saving being reflected in sustainably lower premiums. As more customers move online to claim from and manage their cover, we can expect continued innovation to lead the charge on lowering premiums. 4. The amount of data available for telematics vendors will continue to increase. There are ever greater numbers of sensors on cars, and the rise of assistive technology means the amount of data available is increasing rapidly. Telematics has already been introduced to the industry. However, the more data that becomes available, the more insurers can know about how their customers drive. Insurance providers will increasingly leverage telematics technology to better understand who their customers are and how they are driving to more accurately price policies. 5. Need to add credit shortfall New vehicles are exceptionally costly right now due to lack of inventory from supply chain. The costs for car claims is skyrocketing because of the higher new and used car valuations, inflation and supply chain issues. This means there is an increased requirement for people to add credit shortfall on their policy. Credit shortfall cover is , In the event that your vehicle is written-off or stolen, Shortfall Cover will pay the difference between your comprehensive insurance and the outstanding balance you owe to your finance house, ensuring you're never out of pocket. To contact one of our Insurance Broker contact Marizka in our Short-term department email; service@daberistic.com tel(011)658-1333 ext 108. Source: Apollotechnical.com, Business Report
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AuthorKevin Yeh Archives
January 2025
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