First-to-market low-cost insurance product for vehicle theft through Cartrack
On 14 February, 2018, through its subsidiary, Drive and Save Pty Ltd., Cartrack launched a first-to-market innovative insurance offering for vehicle theft that targets the previously uninsured market in South Africa.
This affordable insurance product, which is strictly limited to vehicle theft, from R9.99 per month, with the premium remaining the same regardless of the value of the vehicle being insured initially.
To take advantage of this offer, customers have to first subscribe to a Cartrack vehicle recovery system or fleet management system with a monthly subscription of between R99 and R179. The vehicle theft insurance cover, which is underwritten by King Price Insurance, becomes valid only once a Cartrack telematics device is installed in the vehicle. The insurance offering pays up to R150,000 in the event of theft and has its own terms and conditions.
This new product is set to make a major impact in the South African market, where as many as 70% of the more than 12 million registered vehicles in South Africa are uninsured, according to the Automobile Association of South Africa. Drive and Save is able to offer this unique offering through Cartrack owing to Cartrack’s audited 93% recovery rate, wealth of insurance telematics data and investment in research and development.
“Through this new and innovative low-cost theft insurance product, we’re seeking to provide an essential service to the uninsured. The theft of a vehicle, and in many cases, with no means to fund a replacement is a real threat for lower-income families facing financial pressures. This type of limited insurance is therefore vitally important to protect against the risk of vehicle theft – an asset which often ensures livelihoods,” notes Cartrack Global CEO, Zak Calisto.
The launch of the R9.99 a month theft-only insurance product coincides with the significant value that insurance telematics is bringing to the industry. It also places Cartrack in the unique position to assist in offering the best comprehensive insurance premiums to customers of this product by providing insurance companies with the necessary driver analytics to offer the best quote to these customers. In this way, Cartrack will continue to assist to be a more integral part of its current and future customers’ lives.