Insurer King Price has launched a pay-as-you-drive car insurance product called chilli, offering fully comprehensive cover at a significantly lower cost, with the aim of assisting consumers cope with the COVID-19 crisis.
“Chilli is insurance for the times,” says Gideon Galloway, King Price CEO. “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. At the same time, we don’t think that simply discounting premiums is a sustainable solution. So, we put our heads together – remotely, of course – and came up with a product that does makes sense.”
Monthly premiums with chilli start at R299, including protection against everything that “normal” comprehensive insurance covers, such as accidental damage, theft and hi-jacking, and third party liability.
Stats from car recovery companies confirm that while most South Africans are driving less, the risks are on the rise, says Galloway, confirming that there will always be a need for comprehensive car insurance.
“We saw a reduction in kilometres-being-driven of around 75% during the first weeks of lockdown. More recently, this figure is around 45%. Recent stats also show that car theft incidents – having dropped dramatically when lockdown was first implemented – are back up to 60% of pre-lockdown figures.”
King Price uses a client-centric approach and tech-driven business model, and chilli follows this route.
“Approved telematics tracking devices feed chilli clients’ mileage straight into our systems. It’s a ‘no mess, no fuss’ solution,” says Galloway.
Clients who opt not to have an approved tracking device installed can upload their mileage on the King Price app. The app also allows the public to get an instant quote and buy without talking to an agent.
Although usage-based car insurance isn’t a new concept, Galloway said that chilli is an example of how King Price does things differently: “We listened to what our clients, and in fact all South African consumers, are saying and developed a product that addresses the specific car insurance needs and concerns that have arisen since COVID-19 started affecting our lives.Using our advanced data and statistical analytics and capabilities, we developed super affordable ‘pay per k’ insurance cover. And then we made it super easy to use.”
Chilli was developed over five weeks, during lockdown restrictions.