Short-term insurer and financial services provider MiWay has announced that it will be reducing car insurance premiums by 10% in April, due to the decreased risk of car accidents as people stay at home during the lockdown.
“As South Africa heeds the call to stay at home for the next few weeks, we want to make this time just a little easier for our clients. We follow a scientific approach to risk rating. When clients work from home, they drive less. This reduces the risk of them being involved in an accident.
“We believe the right thing to do is to reduce their premiums given the reduction in risk,” said MiWay CEO René Otto.
The group said it will automatically apply the premium reduction to April debit orders on its personal lines and business insurance clients. This means clients will automatically see an average of a 10% reduction in their car insurance premiums during the month of April.
The reduction amounts to around R25 million in savings for customers, it said.
On Monday (23 March), President Cyril Ramaphosa announced a 21-day lockdown for the country, which prohibits all South Africans, except those in essential services, from leaving their homes.
The lockdown has shut down all non-essential business offices and is forcing South Africans who can, to work from home. Travel is prohibited outside of medical emergencies, or to visit the store for food and medical supplies.