Spare a thought for South Africa's motor vehicle insurers. Claims frequency brought about by vehicle theft, accidents and weather-related damage has increased significantly over the past twelve months.
Insisting on or at least incentivising off-street parking for policyholders who regularly park in specific locations offers significant benefits for both policy holders and short-term insurers.
Vehicles parked off-street are less likely to be targeted by theft or vandalism compared to those parked on the street. Off-street parking can reduce the risk of accidents including sideswipes or collisions with moving traffic. Parking a vehicle under cover reduces the risk of hail and other weather-related damage which has become an increasing phenomenon.
Off-street parking results in fewer accidents, reduced weather-related claims and fewer incidents of vandalism/theft. This leads to fewer claims for the insurer and improved profitability.
Applying a portion of the increased margin to policy holders who agree to park off-street in the form of lower premiums, will make policies more attractive and competitive. Offering financial incentives such as premium discounts or rebates to policy holders who comply with off-street parking requirements will go a long way to encourage the off-street parking culture.
Moreover, promoting off-street parking aligns with broader safety and urban planning initiatives, positioning the insurer as a responsible and proactive contributor within the community.
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