With comprehensive car insurance it seems many consumers are happy to subsidise the insurance premiums payable by the majority of consumers.
New business insurance premiums are typically calculated using various assumptions and averages. One of these assumptions is that all non-commercial and non-business-use vehicles do the same or similar mileage per month which would mean the insurance rate, for the same personal and vehicle profile, would be the same whether you travel 500 or 5000 kilometres per month. Think about it; the more you drive the more chance there is of you being involved in an accident or being hijacked – tough to hijack you whilst your car is parked in a garage somewhere! Logic would therefore have it that, on average, if you drive less you present less of a risk to the insurer. So, if you drive less than the average motorist you should pay less than the average motorist for your insurance.
With the South African first, Hollard Pay As You Drive comprehensive car insurance premiums are based on the actual kilometres the vehicle travels. So, if you’re a low mileage consumer you might just be able to get cheaper, but not nastier, car insurance.
For further information follow the links alongside.