OUTsurance is cutting car premiums by 15% in May – here’s what other insurers are doing
- Because people aren't driving and are making fewer claims during lockdown, OUTsurance says it has slashed its vehicle premiums by 15% for the month of May.
- The discount will be an automatically applied to all motor insurance premiums, without any action being required from clients.
- Other car insurers are doing the same.
- For more stories go to the Business Insider South Africa homepage.
Because people aren't driving and people are making fewer claims during lockdown, OUTsurance says it has slashed its vehicle premiums by 15% for the month of May.
The discount applies to all existing vehicle insurance policies and will be automatically applied to all motor insurance premiums, without any action being required from clients, said OUTsurance in a statement released on Tuesday.
“We understand that many of our clients are under immense financial strain during this unusual time,” said Danie Matthee, OUTsurance CEO.
The insurer is also doing the following:
- A 15% premium reduction on all Goods in Transit cover for commercial clients.
- Between April and June 2020, Business OUTsurance customers are getting a 50% reduction and Personal OUTsurance customers a 30% reduction in excesses during this period.
- Allowing clients who miss a premium and are within six months of their OUTbonus payment, to use their OUTbonus for use in lieu of the premiums.
- Extending the period on non-payments before cancellation is affected with an additional period of two months.
In total this brings the OUTsurance support for Covid-19 efforts to R209m to date, of which approximately R134 million is for client relief.
Other vehicle insurers like MiWay, DialDirect and Discovery Insure, are also cutting premiums as South Africans stay at home and their cars remain idle:
MiWay clients: Clients automatically get an average 10% reduction in their car insurance premiums during the month of April.
Naked Insurance: You can opt to go on CoverPause, and only pay 10% of your comprehensive premium - subject to you not driving the vehicle at all. It will still be fully covered when parked. This is until 30 June 2020. If you pop out to the shops to stock up on groceries, just click the “resume accident cover” button on the app. You will pay your comprehensive premium for that day, but only for that day.
Discovery: Discovery Insure clients will receive a premium discount of 25%, on their May premium if they drive less than 500 kilometres (km) in April. However, to qualify for the 25% discount, clients need to have Vitality Drive. Their Motor Premium Relief Benefit will automatically reflect in the clients’ premium for May. If the client drives more than 500 km in April, they will receive a 15% discount. Clients will still earn their weekly Active Rewards even if they do not drive at all or drive less than 100km in the week.
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