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Tue, Nov 29, 2022

Naked customers save millions on car insurance using CoverPause feature

Naked, the digital insurance platform, has disclosed numbers showing just how much its customers are saving by using CoverPause. This unique feature on the Naked app lets you pause accident cover on the days you are not driving. Your car remains covered for theft, fire, Mother Nature and all other risks to a stationary vehicle while CoverPause is active. Resuming cover, before you drive again, is done with a single tap of a button on the Naked app.

Naked crunched some numbers up to September 30, 2022, and found:

  • Most users save around 50% of their comprehensive cover rate on the days that CoverPause is active. For the average user this is a saving of R23 per day, depending on their own unique premium level.
  • The top 50 savers (individual clients that have saved the most using CoverPause) have collectively saved R1.4 million on their premiums—each of them saving at least R20,000.
  • The majority of the top 50 were already Naked clients during the 2020 hard lockdown, during which Naked increased the average CoverPause saving from 45% to 90% for a 6-month period during which risk was even lower.
  • The top 1,000 savers have collectively saved R9.8m, or an average of R9,800.
  • The top individual saver has had seven vehicles covered with Naked since 2019. Since then, he has saved R61,742 by using CoverPause.
  • While most of the users in the top 1,000 had multiple cars insured, allowing them to have one car paused for an average of 20 days per month, tens of thousands of other users (with only one car) save by using CoverPause for the occasional long weekend or holiday.

Christo Van Heerden from Centurion, who’s saved a total of R45,408 with CoverPause since joining Naked in 2018, says: “I’m a big fan of CoverPause because it’s so convenient and easy to use from the app, and the savings add up quickly. My small Polo that I used to go to the office with now stays paused for long periods as I mostly work from home, while I only switch on my Land Rover’s accident cover when we go to the bush. By simply pressing one button on the app I save a lot of money.”

At an average saving of R23 per day (risk profile dependent), parking your car for a month while you’re on holiday in December, adds up to around R713 in premium savings. If you work from home and only use your car three or four days a week, the average user saves a cool three or four thousand Rand a year.

Says Ernest North, co-founder of Naked: “CoverPause really came into its own during the pandemic, when so many of our customers were working from home. Since then, activating CoverPause on the days they’re not driving has become a way of life for thousands of our customers. With so many people still working remotely at least some days of the week, CoverPause is a real money saver.”

Many people use CoverPause over the holidays when they might be driving less or only using one of the household cars on most days. North adds that customers who will not be driving when they go on holiday appreciate the peace of mind of knowing they are covered for anything that can happen to their car while it’s stationary and parked safely behind a gate, in a garage, or access controlled parking. “If your car gets stolen, pelted with hail or even scratched by a trolley while parked at the airport, for example, you will be able to claim,” says North.

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