Car insurance innovators to watch in 2024

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2024 is shaping up to be a fascinating year for car insurance, with different players using different strategies to capture the attention of drivers across Australia. What strategy will win out?

Will it be KOBA or ROLLiN's tech-driven billing, Kogan's retail rewards, Huddle's eco-conscious approach or Budget Direct's straightforward value? 

Let’s look more closely at what each of these companies are doing, then you can decide for yourself.

KOBA

KOBA wasn’t the first to launch a ‘pay as you drive’ car insurance model in Australia, but it’s the only one left after Ubicar folded in 2020. While most other companies that claim to offer a ‘pay as you drive’ policy, these other companies are really only asking you to estimate your driving distance and then discounting the policy accordingly. KOBA, on the other hand, uses an app to tunnel into your car’s computer, literally only charging you for every real-time kilometre you drive. Think of it like how the old-school cabs would use a metre to calculate your fare.

If KOBA can avoid the Ubicar fate, it will be one to watch in 2024. Because if the value truly is there, we could see KOBA take off, and other insurers scrambling to offer true ‘pay as you drive’ policies.

ROLLiN’

If KOBA’s model is called ‘pay as you drive’, then ROLLiN’s new business car insurance offering uses a ‘pay how you drive’ model. Both fall under the umbrella term usage-based insurance (UBI).

ROLLiN’s Safe ‘n Save policy, currently only available for business customers (think Uber drivers), uses an app to monitor not only your distance driven, but also various other factors including how safely you brake, accelerate, take corners and more. You’ll then be scored on these factors and given a discount (or not), based on your score.

Having just launched Safe ’n Save in December 2023, ROLLiN says on their websites to reach out if you want to learn when Safe n’ Save might become available to everyone. So, it’s clear they’re testing the tech with their business customers, while gauging interest from everyone else. Our money is that they’ll decide sometime in 2024 whether to roll it out to a wider audience or scrap it altogether. 

Kogan

Kogan Insurance may not have the high-tech buzz of ROLLiN or KOBA, but it definitely brings something different to the Australian car insurance table in 2024. 

Their collaboration with QBE Insurance brings traditional comprehensive and third-party property damage policies, but with a retail twist. Kogan entices customers with a notable $75 discount on your first year’s premiums on new online car insurance policies, and a $10 monthly credit at Kogan.com. This strategy integrating insurance with retail perks caters specifically to Kogan's customer base. 

Unlike the broader lifestyle rewards offered by other insurers, Kogan's perks are tailored for those who frequently engage with their retail platform, particularly in electronics and household items. While Kogan hasn't ventured into bundled discounts for combining car and home insurance (the only bundle deal they offer ATM is for combined home and contents insurance), the possibility of such offers could amplify their appeal even more. 

This blend of insurance and retail incentives positions Kogan as an intriguing player to watch in 2024.

Huddle

Huddle is revving up Australia's 2024 car insurance scene with a mix of digital ease and potential savings cloaked in an eco-friendly vibe. Their B Corp badge shows a dedication to sustainability, most visibly through tree-planting and carbon offsetting vis-a-vis their partner Greenfleet. This ‘carbon-neutral curio’ might not single-handedly save the planet, but it adds an eco-conscious touch.

The real drawcard for some could be discounts up to 30% for low-mileage drivers compared to Huddle’s regular comprehensive cover (of course, terms and conditions apply). Plus, their user-friendly online platform lets you manage your policy and track your driving, perfect for tech-savvy motorists.

Huddle might not be the green knight of car insurance just yet, but their unique blend of digital tools, social responsibility and potential cost cuts makes them one to watch in 2024. Will their eco-friendly features be enough to lure drivers in an era of rising costs? Time will tell, but Huddle's innovative approach is certainly worth keeping an eye on.

Budget Direct

In today's world, where rising interest rates and inflation are hitting the wallet, perks and gamification might take a backseat to straightforward value. That's exactly where Budget Direct steps in. Their Gold Comprehensive Car Insurance offers a practical 15% online purchase discount on your first year’s permiums, and they're even replacing old cars with new ones under certain conditions. 

This could be a real lifesaver if you're driving something brand new. For the less frequent drivers, Budget Direct might reduce premiums, making it even more appealing. And don’t forget about their real-time weather alerts that can warn you about potentially hazardous road conditions in your area.

They’ve caught Mozo's eye too, snagging our award for Exceptional Value in 2023. It's clear, in an era where saving money is more important than ever, Budget Direct’s approach of offering tangible, cost-effective solutions is what might draw people in.

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As you can see, the car insurance industry is offering something for everyone in 2024. These companies, each with their unique approach, are definitely ones to watch as we navigate the coming year.

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