King Price launches ‘drive less, pay less’ car insurance
King Price has launched a pay-as-you-drive car insurance product called Chilli which offers mileage-based price savings on fully comprehensive cover.
The ‘pay per k’ package benefits people who drive their vehicles less, offering up to a 70% saving compared to regular insurance cover, says Gideon Galloway, CEO of King Price.
... as people are driving less every month, we don’t think it makes sense that they’re paying the same for their car insurance every month
“We don’t believe that many South Africans will be going back to their ‘normal’ commute any time soon, and as people are driving less every month, we don’t think it makes sense that they’re paying the same for their car insurance every month.”
Clients can opt to monitor their vehicle’s mileage with a tracking device or take pictures of the odometer and upload it on the King Price app. Customers can also get an instant quote on the app.
With Chilli, monthly premiums start at R299 based on a car worth under R500,000 that is driven less than 100km monthly.
This makes the product particularly suitable for third cars, sports cars or classic cars, all of which tend to notch up low mileage. Vintage cars are currently excluded, but King Price hopes to be able to include them within the next couple of months.
The comprehensive cover includes protection against accidental damage, theft and hijacking, and third-party liability.
Galloway says that car theft incidents, having dropped dramatically when lockdown was first implemented, are back up to 60% of pre-lockdown figures with the eased regulations.
King Price, launched eight years ago, is known for bucking the trend by offering insurance that decreases monthly as cars lose value.