The Middle East conflict has disrupted global oil supplies, leading to higher fuel prices in South Africa for the next few months. This will put extra pressure on households, especially daily commuters. Government has also urged consumers to reduce their fuel consumption where possible.
Here are some tried and tested ways to save petrol while keeping your expenses in check.
Work from home if you can
The best way to save on petrol is to drive less. If you work from home for at least part of the week, you’ll stretch out your petrol station visits. You can also stack your errands so that you visit the shops and do admin all in the same Saturday morning, or on your way home from work or school. This saves unnecessary trips.
As further incentive, Santam offers SmartPark, which helps you save up to 20% of your insurance premium if you drive less than 15 000km a year. This makes for more affordable comprehensive car insurance.
Petrol saving tips for commuters
Here’s where it pays to be a good driver. To save on fuel, drive slower. Avoid harsh braking and acceleration. And keep your tyres correctly inflated.
According to the International Energy Agency, one of the most effective ways to reduce fuel consumption while driving is to reduce speed by at least 10km/h on highways and slower cars mean safer roads all round.
Consider carpooling to save fuel costs
Carpooling can help you offset some running costs by allowing you to share rides with people travelling in the same direction as you. It offers several benefits, but it could also impact your car insurance cover.
Before entering a carpool arrangement using your car, take the time to check the terms and conditions of your policy. Otherwise, you run the risk of a cover shortfall or your claim being denied altogether.
A quick run-down of common carpool arrangements
- Specific driver carpool: One person is the designated driver with their own car, and passengers pay a weekly/monthly rate towards costs like petrol, parking, and maintenance. Keep in mind that this amount shouldn’t exceed the SARS Reimbursement Travel Allowance, i.e. no profit is made. Discuss with your passengers what happens in the event of an accident. They usually would not be able to claim from you for bodily injury or death within the Road Accident Fund mandate.
- Alternating carpool: In this arrangement, everyone takes turns to drive with their own cars on a daily, weekly, or monthly basis. When you drive, you pay. When you ride, it’s free. In this case, no money is exchanged, and each driver is responsible for their own insurance and maintenance costs. As with the previous example, passengers will be unable to claim from you for bodily injury or death in the event of an accident and will have to claim from the Road Accident Fund mandate.
- Employer carpool: Some employers offer staff the use of company vehicles to encourage carpooling. Employees would then pay a fare to cover petrol, insurance, and maintenance costs.
Inform your insurer of any carpool arrangements
It’s always important to let your insurer know if anything changes in your regular driving set-up, as this can affect insurance claim excesses and payouts.
For example, if the designated driver of your car is not the regular driver listed in your insurance policy documents and is effectively using your vehicle the most, your claim may be negatively impacted due to additional excesses or premiums being applicable.
If money changes hands, that can also complicate things. Your insurer may view it as a commercial transaction, especially if the amount exceeds what is necessary to cover petrol, maintenance, parking, etc. You would then potentially need business insurance or a special permit if you transport children or more than 12 people at a time.
How to lower your car insurance premium
When the petrol price goes up, everything else tends to rise too. If you’re feeling the squeeze, check whether your insurance set-up is working for you.
Here are some tips:
- Bundle your home and car insurance together: By putting home insurance, contents of home, and comprehensive car insurance under one policy, you may save up to 25% on your premiums.
- Consider whether your insurer offers you value-added services that can save you time and money - such as emergency breakdown assistance, locksmith services, and more. Santam offers free SOS services.
- If you’re struggling to afford your insurance premium, you can adjust your cover.
Partner with an insurer who has your back
If you’re considering a carpool, it’s a good time to review your car insurance cover and consider whether you would like roadside assistance, tyre and rim cover, or windscreen protection.
Santam understands what consumers are looking for, and has over 108 years’ experience in providing insurance that’s good and proper. Contact us today for a comprehensive car insurance quote.