After the Pandemic, the Level of Insurance Claims are Returning to the 2020 Numbers

As roads become busy once again in South Africa, the level of claims made to insurance companies grow accordingly. Commuting patterns are beginning to look a lot like they used to look in March 2020, before the Covid-19 pandemic hit every corner of the world, and this situation is also bringing back the ways the society moves around to what it was before. 

When the pandemic started threatening the health systems of countries around the world, which looked like they could collapse, administrations began to make decisions to protect their citizens. One of those measures was to impose lockdowns, which were measured at different levels, imposing more or less restrictions to the population. In South Africa, with lockdowns levels 4 and 5, people stayed at home, isolated,  and children and adults alike turned to online schooling and working, respectively. This situation brought up, in turn, a change in the way motor vehicles were used and since the number of vehicles on the streets declined,  logically, the amount of claims made to car insurance companies declined, too. 

Being covered by car insurance is always beneficial when owning a vehicle, there is no doubt about this statement. However, when financial cuts had to be made during the hard economic periods we faced because of the pandemic, resigning to one’s car insurance sounded like an accurate course of action. While working from home, and going out much less than before, it seemed like people could do without their coverage, anyway their cars stayed at home like them. There were also other decisions made by households, for instance, instead of dropping their coverage, many vehicle owners decided to change from a comprehensive car insurance cover that included theft and fire-related incidents, to only third party cover. By doing this, citizens could save the money that used to be destined to a premium that was now not being used at all. 

In any case, nowadays that commuting patterns are driving people out to the streets again, these decisions may have to be rethought. Whether to feel more confidence while driving or to feel safer, having comprehensive insurance is once again a real need. Moreover, there is an urge to look for a solution that can balance what individuals require for their motor vehicles with what they are actually able to afford. 

More people on the streets means a higher chance of encountering risks on the road, like being part of a car accident or being robbed, among many others. This is why there are more and more claims nowadays and drivers ought to be prepared. In case of having to face a hazard, it will always be more convenient to own coverage, than to pay for damage through money saved or a credit card. As a consequence, many who had stopped paying for their coverage are now engaging in conversations with their brokers to re-hire comprehensive car insurance that best fits their actual needs.