Fleet management and vehicle tracking group Cartrack has launched a R9.99-a-month theft-only insurance product, although the true price is closer to R108.99, when all costs are included.
The JSE-listed group says the “first-to-market innovative insurance offering for vehicle theft” targets the uninsured market in South Africa.
According to the Automobile Association of South Africa, about 70% of the more than 12-million registered vehicles in the country are uninsured.
“Leveraging its audited 93% recovery rate, wealth of insurance telematics data and investment in research and development, Cartrack is able to offer theft-only vehicle insurance at R9.99, subject to terms and conditions, if a Cartrack telematics device is installed,” says the group.
“Through this new and innovative low-cost theft insurance product, we’re seeking to provide an essential service to the uninsured,” notes Cartrack CEO Zak Calisto.
“The theft of a vehicle with, in many cases, no means to fund a replacement is a real threat for lower-income families facing financial pressures. This type of limited insurance is vitally important to protect against the risk of vehicle theft.”
Calisto says a vehicle recovery service is included in the R9.99 product, as one of the prerequisites is to install a Cartrack vehicle tracking device, which includes a monthly subscription fee starting at R99 for the most affordable offer.
He says, when Cartrack is unable to recover the stolen vehicle, a pay-out of up to R150 000 is made.
“The benefits of installing a Cartrack vehicle tracking device includes vehicle recovery, while it also gives the driver access to valuable data analytics such as driver behaviour, fuel consumption and geofencing technology to monitor location. “The data analytics can also be provided to insurance companies to ensure that the Cartrack customer receives the best deals for comprehensive insurance should they require it.”
Cartrack has also announced growth of more than 85 000 subscribers since September 1, 2017, to a total of more than 750 000 subscribers globally.
The year-on-year subscriber growth to date is around 25%. Calisto attributes this double-digit growth to Cartrack’s investment in operating and distribution capacity.
“This growth in subscribers also puts us in the position to introduce even more value propositions to the market.
“Special focus for us will be workforce optimisation, which leverages all available telematics to improve the productivity of assets and people through technology, and insurance telematics. We still see ourselves as a start-up and are undergoing increased investment in our systems and services.”
Cartrack has a presence in 24 countries spanning Africa, Europe, the US, Asia-Pacific and the Middle East.