New car insurance company KOBA Insurance bases its fees on the use of their car by drivers
KOBA Insurance just launched this week, with founder Andrew Wong, Promising Drivers, “The less you drive, the less you pay”.
“We wanted customers to pay per mile for what they use,†he said.
“Rather than a single round number for the whole year.
“We hope to take a big step forward that will really help consumers take control of their own premium.”
The company aims to serve people who drive less than 8,000 km / year.
It tracks the distance a customer’s car has traveled using a small black monitor that plugs under the steering wheel, meaning no logbook is required.
The insurer charges a flat rate of $ 360 each year to cover things that can happen to the car while it is parked.
The rest of the charge is calculated based on how long the car has been driven, with a rate of around five cents per kilometer on average.
Hawthorn’s Pip Davis, who barely drives his Jeep Wrangler, has chosen to use KOBA and expects to pay half of the insurance bill she previously paid.
“Basically I use the car just to take the dog to the river to run with a friend,†she said.
Financial advisers recommend that people compare insurance policies, looking at factors other than price.
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Canstar’s Steven Mickenbecker said drivers might want to consider things like if windows, rental cars and key locations are included.
“People have to consider more than the price,†he said. “They have to make sure they get the coverage they expect and want.â€
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