The Top Car Insurance Trends Of 2022
It’s fair to say that the world has experienced a dramatic change in how we operate over the last few years. From a world-wide pandemic, to a shift in the way we work and do business – even the car insurance industry is going through some fundamental adaptations.
In our latest blog, we look at some of the trends that are emerging in the car insurance industry today.
THE RISE OF ONLINE SHOPPING
Online shopping has been on the rise for a number of years thanks to the convenience of having almost everything you could possibly need at your fingertips, ready to be yours with a click of a button and delivered to your doorstep. So why wouldn’t the same be true for buying a car?
There might be a little more red tape than ordering a case of your favourite merlot, but with the advances of technology it is anticipated that you may soon see dealerships and marketplaces making the move to e-commerce and allowing you to purchase your car online, along with several financing options and car insurance. This will literally put you, the consumer, in the driving seat.
Did You Know: E-commerce retail sales totalled R30.2 billion in 2020 – more than double the R14.1 billion achieved in 2018.
REMOTE WORKING – SET TO STAY
Not only are we more comfortable with inviting e-commerce into our homes, now even our working environments are coming back home. Through months of lockdowns and travel restrictions, businesses encouraged their employees to work from home wherever possible.
Now that things seem to have returned to “normal”, a proportion of businesses have continued to embrace the remote working culture, meaning less travel time for huge numbers of employees.
This has had a noticeable effect not just on the way we use our personal vehicles but more importantly, it has changed the type of car insurance policies that consumers are now choosing.
Work policies have certainly influenced how we use our vehicles, but rising fuel prices caused by increasing instability at home and abroad, have made many people rethink their transport choices.
Ex-commuters are following the trends of either downsizing their cars, not buying new cars or even selling additional cars which are no longer being used daily to cut maintenance and insurance costs. Ride-hailing companies, such as Uber and Bolt are also on the rise for those that don’t need a permanent transport option.
Did You Know: A credit stress report by Eighty20 reported that vehicle asset finance has seen a 32% increase in overdue loans year on year.
With increasing financial pressure on consumers and constrained budgets, more and more people are shopping around for better car insurance deals. Technological advances are making it easier for you to shop around and compare the best car insurance policies on offer.
GETTING THE BEST DEAL
Despite the range of comparison websites available, we believe it’s always in consumers best interests to engage with their insurance broker to really get the best deal on your car insurance.
Rather than focussing on cost alone, your brokers are able to suggest the right insurance product for you, based on their knowledge of a range of insurance providers and products, as well as your individual circumstances and requirements.
Brokers can also advise on factors that could affect the price of your car insurance policy, like the age of your car (newer cars are usually more expensive to insure), your age (younger drivers are considered to be a higher risk for insurers) and when your last accident was – careful driving is often rewarded with lower premiums.
Another factor to bear in mind when choosing your own car insurance policy is the excess – lower premiums may come with a higher excess, which is payable by you before any payout is made in the event of a claim. When it comes to renewals, take note of any annual adjustments.
Your circumstances are likely to have changed in the past year and your car’s retail value will also need to be adjusted to keep your premium accurate.
Our team can guide you through all aspects of car insurance to make sure you get the best car insurance with appropriate levels of cover for your needs.
Get in touch with your broker today if you have any questions.