OUTsurance was only 77% cheaper than Dial Direct, rather than 78% – so it has been ordered to yank an ad

Business Insider SA
A screengrab from the offending OUTsurance ad. (Yo
A screengrab from the offending OUTsurance ad. (YouTube)
  • An OUTsurance ad showcased how much a real-life client saved by switching from a competitor.
  • But the "regular driver clause" in the policies differed.
  • This meant a slightly smaller saving - but the industry watchdog still ordered OUTsurance to withdraw or change its ad.
  • For more stories, go to Business Insider SA.

OUTsurance has been ordered to withdraw one of its television ads after it was found that it overstated the saving on one of its policies – by R23.

The ad features 42-year-old man from Gauteng who is driving his 2002 Volkswagen Golf 4 while being interviewed by television presenter Katlego Maboe about his insurance situation.

The ad shows that he used to pay R1,667 per month with his previous insurer, and that he now pays R362 per month with OUTsurance, resulting in a saving of R1,305 per month.

But a viewer complained with the advertising watchdog that there wasn’t enough information to confirm that the policies are comparing apples with apples. It wasn’t clear whether both policies insured the same vehicle model, for example. 

In response to the complaint, OUTsurance said that the advertisement features an actual client who saved after switching from Dial Direct.

OUTsurance confirmed that the same vehicle was insured – but with the difference that the policy holder was the “regular driver” with the Dial Direct policy, while with the OUTsurance it is his wife.

The Advertising Regulatory Board found that, taken this “regular driver” change into account, the saving would have been R23.46 less than the OUTsurance ad stated.

“The overall communication of a large saving is still correct. However, the communication of the commercial is that the comparison is like-for-like, and that communication is misleading – the change of regular driver is a material difference which is not communicated. Not only is this not communicated, the fact that Mr Moodley is driving in the commercial implies that he is still the regular driver of the vehicle.”

In light of this, the body ordered OUTsurance to withdraw or amend the television ad immediately.

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