24 August 2011: The decision by government to reduce the level of toll tariffs payable by motorists in Gauteng who pass through the forthcoming toll gates on main roads across the province is a positive development. However, with the introduction of the toll gates still likely to change people's driving patterns, it is essential that motorists consider the insurance implications of any change in their driving behaviour.
Last week Cabinet announced that toll tariffs for the first phase of the Gauteng Freeway Improvement Project had been approved following a review of the costing. Under the new prices, motorcycles would pay 24 cents per kilometer, from the initial proposed 29 cents. Light motor vehicles (class A2) will pay 40 cents, while medium vehicles (class B) will pay R1.
According to Helen Szemerei, CEO at IntegriSure, while the cost has been reduced from the initial price suggested, it is still likely to have a significant impact on people's finances. "We would expect some motorists to take secondary roads in order to avoid the toll gates. However, these secondary roads are likely to be of an inferior condition, possibly being less well lit and with more frequent potholes. As a result, motorists could well see an increase in the number of accidents or maintenance issues when taking these routes.
"It is essential for any motorist who does consider taking alternative routes to ensure that not only is their insurance is up to date but also that their policy covers them from any damage arising from potholes."
Szemerei also warns that consumers who opt for pay as you drive insurance cover are also likely to be affected by the introduction of the toll gates. "These consumers are likely to have chosen this form of coverage in order to save money. As a result, they are some of the most likely to take alternative routes in order to avoid the cost. However, by doing so they are likely to drive a much farther distance, potentially making their insurance cover far more expensive."
"In addition, some insurance policies offer limited coverage to policyholders in exchange for a lower premium. However, in these cases cover may then be limited to the complete loss of a vehicle, not for damage caused to a vehicle. As a result, the very people who are trying to save on a premium could find themselves with a huge bill if they are involved in an accident."
She says consumers should be aware that there are many other options open to them when choosing the right insurance policy for their needs. "It is a good idea for any motorists who have opted for limited cover in exchange for a lower premium to speak to a qualified financial adviser who can help them to gain a cheaper insurance premium whilst still retaining comprehensive cover."
Media enquiries: Bruce Nortje – bruce@integrisure.co.za