No traffic and everyone’s at home… Some short-term insurers offer lower premiums
Companies who provide short-term cover for things such as our cars and household content suddenly carries a massively reduced risk burden.
There are hardly any cars on the roads, and everyone is at home with their stuff.
The Money Show’s Bruce Whitfield asked consumer journalist Wendy Knowler, “Are our premiums dropping?”
Not so much, was her reply.
There are, however, some exceptions.
Knowler mentioned newcomer “Naked” and its policyholder flexibility as coming into its own during the lockdown.
It reduced its premiums from 27 March 2020 to 30 June 2020, or longer if the Covid-19 pandemic results in significant changes to how often people drive.
When its clients need to drive to a shop, they just click “resume accident cover” on an app and it’s done instantly.
Just hit the “pause” button!
Naked clients on this special contract (called “CoverPause”) pays roughly 10% of their usual, comprehensive premium.
Knowler also discussed what the following short-term insurers are offering their clients during the lockdown:
Telesure (Auto & General, First for Women, Budget Insurance, Dial-direct)
King Price Insurance
Naked’s business model is just brilliant for lockdown! … You on-and-off your accident cover on an app yourself… Most people end up paying just 10% of your normal premium…Wendy Knowler, consumer journalist
One insurer said to me they’ll look at their position if there is a dramatic reduction in claims… A ridiculous comment – it is going to go down!Wendy Knowler, consumer journalist
Consider moving to an insurer that is more accommodating…Wendy Knowler, consumer journalist
For more detail, listen to the interview in the audio below.
This article first appeared on CapeTalk : No traffic and everyone’s at home… Some short-term insurers offer lower premiums
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