Looking for comprehensive car insurance always felt like I am the lead in a coming of age movie. Confused about which boy I liked more. Discovery, King Price or some different boy who I have not thought of yet, like Naked. In many ways, getting insurance is a rite of passage into adulthood. But, all the different plans, benefits, and excesses make it confusing. The constant sales calls do not help either. They are like the boys in high school that come on too strong. A bit too desperate for my liking. I know you feel the same. All jokes aside, getting the best value for money was always one of my top priorities. So when I stumbled upon the cheapest comprehensive car insurance I have seen yet, I just had to know more.Â
They say sharing is caring, so here is how I am paying less for comprehensive car insurance in 2022 than I paid in 2014 and 2021.
What is Naked Insurance
Naked is an online home and car insurance provider that provides affordable, and competitive insurance options. They solely provide the service online. No more call centres, calling for quotes or waiting. You can purchase and activate your insurance directly on their website or app.
It is as simple as 1, 2, 3.
- Complete the online car insurance quote
- Add to cart and pay
- Take pictures of your car
Abracadabra!!! You are insured!!!
It is as simple as requesting a car insurance quote without the requesting part. Or the constant sales calls like an ex that realised he wants you back. (I genuinely dislike sales call đ )
At first glance, this sounded too good to be true. But, after moving to Naked Insurance a few months ago, I can safely say that it is as simple as promised. Even more affordable than I thought. So how affordable is it?
Naked Insurance Pricing
Naked might be the cheapest comprehensive car and home insurance provider in South Africa. That is a very big claim, I know. But, this is the same insurer that has policies starting at R50. I have used various insurance providers and requested quotes from even more over the years. The one thing I always look for is the best value for money.
Here is a comparison of all the comprehensive car insurance policies I have held. I will not focus on any cashback plans and only cash out of pocket. Like Kurt always says “Cash flow is king”.
| Company | Year Insured | Make and Model | Monthly Premium | Excess |
|---|---|---|---|---|
| Discovery | 2014 | 2005 Toyota Tazz | R789.58 | R3250 |
| Santam | 2016 | 2005 Toyota Tazz | R335.71 | R3000 |
| Santam | 2017 | 2006 Nissan Micra DCi | R468.42 | 5% of claim. Minimum of R3000 |
| King Price | 2020 | 2006 Volvo S60 | R503.76 | R4500 |
| King Price | 2020 | 1994 Volkswagen Jetta | R503.46 | R4500 |
| King Price | 2021 | 2006 Nissan X-Trail R44 | R542.21 | R4500 |
| Naked | 2021 | 2007 Nissan X-Trail R44 | R343 | R1500 |
This is hands down the cheapest excess payment amount I have seen for any comprehensive car insurance. Why is that? Naked puts you in control. You customise your policy to suit your needs and pocket, not the other way around. I think it might be time you compare your current car insurance with Naked Insurance.
Naked Insurance monthly premiums and excess
Excess greatly affects your premium. The higher your excess, the lower your monthly premium. The lower your excess, the higher your monthly premium. Some other factors contributing to your monthly premium are:
- Your location
- Vehicle type and specification
- How long you have had your licence
- Parking conditions
- Last 3 years insurance history
With a higher excess, you run the risk of not having the capital in the event you need to submit a claim. Nakedâs lowest excess is R1500 and this is the option I opted for. With a low excess, you can plan better and not be caught off guard in the event of an emergency.
Even with the lower excess-higher premium option, I am still paying less than when I was insured with other companies many years ago. This is a great option for first-time car insurers. Naked Insurance is cost-effective, efficient and time-saving. As a first-timer, you won,t have to know the struggle.
Now, I am not in the business of moving insurance when something cheaper comes around. I always take my quote to my insurer. King price was unable to match Naked Insuranceâs offer. With good reason. Their running cost is significantly higher like all other insurers. Why is that?
How can Naked Insurance afford to charge less?
For any tech/online business, automation saves money and improves turnover. Naked seems to have worked out how to take that and automate insurance. Making the whole insurance process an online application and management system. Using their Financial Technology (car insurance calculator) powered by Artificial Intelligence (AI) they save you money. Nothing like the AI in Terminator, âSkynetâ, that takes over the world. This one saves you money by cutting some of the biggest cost contributors to your insurance premiums. Call centres, staffing, and reduced overhead running costs as a result of no centres. Meaning you pay less. Much less.
No more harassing calls from insurance companies every 2 days. No more “I am just following up to see if you have made a decision”, âare you still interestedâ and “I’m calling to help you open a policy”. Just time and money saved. The best part, besides the amount of money you save, is that the claims process is online too. They even have an instant claims approval system for small claims. It makes submitting a claim easy and convenient. What about updating policy information?
Updating your policy information
Naked seems to value efficiency. As there is no better word to describe their service. If you have ever updated your information with an insurer you know the struggle. You have to call or email and it is not normally instantaneous as they have to recalculate your premium. Naked made this a thing of the past. Finally, a service that feels like it’s in the right decade. I moved houses recently and updated my policy information on the app. It took about a minute and I got the new premium instantly. And that was that, without any hassle. If that doesnât SCREAM efficiency, I don’t know what will. So, is Naked Insurance the right insurance for you?
Should you get Naked Insurance
If you want to save money then Naked insurance is for you. But, you donât have to take my word for it. On Google reviews and Hellopeter Naked Insurance got 4.3 and 4.4 stars out of 5 stars respectively. That is super impressive! If that is not convincing enough here is my list of pros and cons:
Pros
- Increased cash flow
- Lower excess to premium comparison (if not the lowest)
- Competitive fixed excess rates
- Effective and efficient application and claims system
- No sales calls. EVER!
- Only offer 2 packages – comprehensive and 3rd party cover
- Naked doesn’t do credit checks!
Cons
- Only offer 2 packages – comprehensive and 3rd party cover
I could only come up with one con and need your help with more. Leave me a comment if you think of anything else.
PS: Credit scores normally affect your monthly premium and knowing that Naked insurance doesn’t take this into consideration is a huge plus. By not checking your credit score, they do not list an enquiry that affects your score, but regular payments will increase it. Want to learn the hidden mystery behind your Credit Score click here.
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