In a country where between 65% and 70% of motor vehicles remain uninsured (according to the Automobile Association), it seems inevitable that a company would recognise the gap in the market and introduce an affordable theft-only insurance product. This is precisely what recently occurred through Cartrack’s subsidiary, Drive and Save (Pty) Ltd, with theft-only vehicle insurance now available from only R9.99 per month.
Drive and Save, underwritten by King Price Insurance, offers Cartrack’s customers vehicle theft cover of up to R150 000. This monthly premium is less than the cost of a loaf of bread, and undoubtedly demonstrates to South African vehicle owners and insurers that it is possible to offer consumers affordable vehicle theft insurance.
Any motorist that subscribes to a Cartrack vehicle tracking system, which is available at a monthly fee of between R99 and R179, is entitled to benefit from Drive and Save’s’ theft insurance cover, which is available at an additional cost from only R9,99.
Cartrack South Africa CEO, Andre Ittmann, notes the reason behind the company’s decision to offer this insurance.
“As a leading global provider of fleet management, stolen vehicle recovery and insurance telematics services, we are always looking for new ways to meet our customers and South Africans’ needs. When identifying the most pressing needs of South African motorists, we noticed that there was a significant need for affordable vehicle-only theft insurance, with thousands of motorists completely uninsured due to a variety of economic reasons.
“As such, we decided to partner with and offer Drive and Save, with this product set to offer much-needed security and relief to local motorists. This product is aligned with our mission to consistently offer our customers innovative and affordable products that result in material benefits to their lives.”
He further notes that some of the reasons for motorists not purchasing vehicle insurance include the inability to afford monthly premium or an unwillingness to pay a monthly premium for theft, as those motorists believe that they will not become victims of theft or hijacking. However, he adds, without a pay-out from an insurance company, many drivers will not be able to replace a stolen vehicle.
Ittmann concludes that he is confident that Drive and Save will have a lasting impression with South African consumers.
“We anticipate that through offering this affordable product, a range of uninsured drivers will enter the insurance space and subsequently benefit from better security and peace of mind that was not previously accessible to them. Ultimately, this benefit them in both the short and long term.”