3 ways digital insurance can save you time and money

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(Image: Pexels)
(Image: Pexels)

Many South Africans still view traditional insurance as a purchase of the privileged - a nice-to-have safety blanket, if you can afford it. This explains why, in 2021, up to 70% of South Africa's 11 million registered vehicles were still uninsured.

There are many reasons why people may choose not to insure their most valuable items, many rooted in historically bloated, cumbersome, or pricey insurance options.

Digital insurance is looking to change this. By doing away with call centres, upselling agents, and business models that lead to scepticism, digital insurance is dropping barriers and appealing to the uninsured.

Rather than sit on a phone call for several minutes, you can now use custom-built apps that deliver instant insurance quotes, lower premiums, customisable excesses, and even features like pausing your cover.

Here are three ways digital insurance can appeal to you if you are uninsured, with some examples from SA’s vehicle insurance market.

1. Flexibility and cost saving

Insurance may be seen as a grudge purchase for some, and during tough economic times, they could be inclined to think they simply can't afford to insure valuable items. Even the already insured consider cutting this expense from their personal budgets when times get tough.

But digital insurance is working on solutions to this. By doing away with call centres, distribution, and admin costs, they can pass savings on to clients - which means lower premiums for most.

Digital insurers offer products like third-party liability insurance, which protects you from claims other drivers may have against you if the accident was your fault   from as little as R38 per month - directly via an app.

Mobile insurance apps also increase flexibility. At Naked, for example, you have the option to instantly pause the accident portion of your car cover for days which you won’t be driving and often leads to a saving of up to 50% on premiums.

2. Ease of use

When some make their first leap into the world of insurance, it's often a process fraught with unnecessary complications - long call centre wait times, many options, and an intimidating process that may feel rushed. Digital insurance however lets you consider the products at your own pace.

Online insurance options, like Naked, have left outdated models in the past and thrust insurance into the future. Slick mobile apps do away with long call centre conversations and put the power back in the individual's hands. Customers can instantly see how much they're paying in premiums and excess, adjust this by selecting different options, and pay for it immediately.

3. Empowering customers and removing scepticism

Families that have never had insurance or have not discussed it at some point, often leave future generations without the understanding of why it is so crucial to be insured.

Braai-side insurance talk doesn’t help, either. It’s seldom about positive experiences and instead is more often about unsuccessful claims or lack of coverage.

Digital insurance providers are turning old-school insurance business models on their heads and changing the public sentiment around the industry in the process.

By making money from platform fees there's no conflict of interest when assisting customers with legitimate claims. This model means there's no incentive not to pay out claims. To prove this, companies like Naked even give unclaimed money to various causes chosen by the customer - called the Naked Difference - aligning the interests of the customer and those of the business.

To find out more, visit Naked HERE.

This story was sponsored by Naked Financial Technology, an authorised FSP, and produced by Adspace Studio.

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