Fleet management, vehicle recovery and telematics group Cartrack aims to expand its newly launched affordable vehicle insurance product range over the next six to 18 months.
Cartrack unveiled a R9.99 product in February, strictly for vehicle theft and hijackings, through its new subsidiary, insurance broker Drive + Save.
To take advantage of this offer, however, customers have to subscribe to a Cartrack vehicle tracking system with a monthly subscription of between R99 and R179. The vehicle theft insurance cover, which is underwritten by King Price Insurance, only becomes valid once a Cartrack tracking device is installed in the vehicle.
The insurance offering pays up to R150 000 in the event of theft or hijacking.
The R9.99 insurance premium remains the same regardless of the value of the insured vehicle.
While insurance cover is provided on a month-to-month basis, customers sign a three-year contract for the Cartrack tracking system.
Trucks and minibus taxis – as higher risk, more expensive vehicles – do not qualify for the insurance product. Cars and light delivery vehicles are included.
Cartrack South Africa CEO Andre Ittmann believes the new product will provide a much-needed lifeline to thousands of South African motorists.
“The theft of a vehicle, with no means to fund a replacement, is a real threat for many vehicle owners, especially lower-income families facing financial pressures. As such, affordable insurance is vitally important as a means to protect against the risk of vehicle theft, which is an asset that often ensures livelihoods.”
Ittmann believes that many South African motorists are uninsured, not due to apathy, but rather the high cost of many vehicle insurance offerings.
According to the Automobile Association of South Africa, around 70% of the more than 12-million registered vehicles in South Africa are uninsured.
Ittman says he expects the Drive + Save product to typically attract vehicles priced between R50 000 and R150 000.
He adds that Cartrack is looking at expanding its insurance offering in a second phase rollout, with, for example, a R19.99 a month product that could insure vehicles up to a limit of R300 000.
Cartrack notes vehicle finance houses are unlikely to accept its R9.99 insurance product as sufficient for the purpose of financing a new or used vehicle, as they would probably require comprehensive insurance that includes accident cover.