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Pay and ride motor insurance scheme.
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Impunity
#1 Posted : Thursday, August 23, 2012 1:15:34 PM
Rank: Elder

Joined: 3/2/2009
Posts: 26,331
Location: Masada
Pros and scones???
As in premium is based on mileage logged and not a flat rate as currently constituted.
d'oh!
Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Robinhood
#2 Posted : Thursday, August 23, 2012 4:59:43 PM
Rank: Elder

Joined: 12/11/2008
Posts: 2,306
Impunity wrote:
Pros and scones???
As in premium is based on mileage logged and not a flat rate as currently constituted.
d'oh!


Majamaa watanyonga the speedometer kibao smile
Great men are not always wise, neither do the aged understand judgement...
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hindi ni riu
#3 Posted : Thursday, August 23, 2012 5:58:49 PM
Rank: Member

Joined: 5/2/2010
Posts: 305
Impunity wrote:
Pros and scones???
As in premium is based on mileage logged and not a flat rate as currently constituted.
d'oh!



No cons. Many Pros. You can save upto 40% on your motor insurance. Gateway Insurance has introduced the Pay As You Drive scheme (PAYD).Depending on the value of your car, the savings could be massive.

“Once the last tree is cut and the last river poisoned,you will find you cannot eat your money" Traditional saying.
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hindi ni riu
#4 Posted : Thursday, August 23, 2012 6:02:12 PM
Rank: Member

Joined: 5/2/2010
Posts: 305
Robinhood wrote:
Impunity wrote:
Pros and scones???
As in premium is based on mileage logged and not a flat rate as currently constituted.
d'oh!


Majamaa watanyonga the speedometer kibao smile



@Robinhood...The distance traveled is not based on your odometer. A device is fitted in your car that calculates the distance traveled. The device doesn't interfere with your car in any way.

“Once the last tree is cut and the last river poisoned,you will find you cannot eat your money" Traditional saying.
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alustaadh
#5 Posted : Thursday, August 23, 2012 6:26:14 PM
Rank: Member

Joined: 11/6/2010
Posts: 222
Location: NAMANGA
post some figures here. who is offering this product?
It is humiliating to be associated with thieves and murderers.
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kingfisher
#6 Posted : Thursday, August 23, 2012 6:38:03 PM
Rank: Elder

Joined: 4/9/2008
Posts: 2,824
hii hapana mbaya!!
When I have money, I get rid of it quickly, lest it find a way into my heart.
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Robinhood
#7 Posted : Thursday, August 23, 2012 7:28:57 PM
Rank: Elder

Joined: 12/11/2008
Posts: 2,306
hindi ni riu wrote:
Robinhood wrote:
Impunity wrote:
Pros and scones???
As in premium is based on mileage logged and not a flat rate as currently constituted.
d'oh!


Majamaa watanyonga the speedometer kibao smile



@Robinhood...The distance traveled is not based on your odometer. A device is fitted in your car that calculates the distance traveled. The device doesn't interfere with your car in any way.


@Hindi, thanks for the clarification. It may make sense then
Great men are not always wise, neither do the aged understand judgement...
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hindi ni riu
#8 Posted : Friday, August 24, 2012 9:50:37 AM
Rank: Member

Joined: 5/2/2010
Posts: 305
alustaadh wrote:
post some figures here. who is offering this product?



@alustaadh If your car is worth say, 1.5M and you drive about 6000km per year, you get comprehensive insurance for as little as KES48000/- as opposed to paying KES112000/- (on 7.5%)representing some savings of KES64000/-!! ...and even more savings in the subsequent years! How about that!

“Once the last tree is cut and the last river poisoned,you will find you cannot eat your money" Traditional saying.
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tuvok
#9 Posted : Friday, August 24, 2012 10:32:00 AM
Rank: Member

Joined: 5/2/2007
Posts: 536
hindi ni riu wrote:
alustaadh wrote:
post some figures here. who is offering this product?



@alustaadh If your car is worth say, 1.5M and you drive about 6000km per year, you get comprehensive insurance for as little as KES48000/- as opposed to paying KES112000/- (on 7.5%)representing some savings of KES64000/-!! ...and even more savings in the subsequent years! How about that!


6000km a year - that's 500km monthly or 17km daily. If your commute is just 17km daily maybe it would work for you (and I dare say that 1.5m would be a waste of money...)
Weekend driving ... can find you 200km away, already > 6% of your annual mileage...
Of course 6000km might also mean having multiple cars....

Many people do much more than 6000km annually. At least double that actually.

So 12000km annually (or 1000km) - 93,950/- - for the '13000km plan'
Still reasonable if you are paying a 7.5% premium.

Now some don't pay 7.5%, closer to 4% (e.g I have not done any claims for >4 years)....

This would only make sense if your other alternative is 7.5%. But if you've been accident free a while.. the discounted percentages work better.

It is still good that insurance companies are getting creative in their offerings.

I would think now they need to start including other factors like age, gender in their calculation of insurance premiums. I'm sure their actuaries have some stats that would be useful.
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hindi ni riu
#10 Posted : Friday, August 24, 2012 1:40:02 PM
Rank: Member

Joined: 5/2/2010
Posts: 305
tuvok wrote:
hindi ni riu wrote:
alustaadh wrote:
post some figures here. who is offering this product?



@alustaadh If your car is worth say, 1.5M and you drive about 6000km per year, you get comprehensive insurance for as little as KES48000/- as opposed to paying KES112000/- (on 7.5%)representing some savings of KES64000/-!! ...and even more savings in the subsequent years! How about that!


6000km a year - that's 500km monthly or 17km daily. If your commute is just 17km daily maybe it would work for you (and I dare say that 1.5m would be a waste of money...)
Weekend driving ... can find you 200km away, already > 6% of your annual mileage...
Of course 6000km might also mean having multiple cars....

Many people do much more than 6000km annually. At least double that actually.

So 12000km annually (or 1000km) - 93,950/- - for the '13000km plan'
Still reasonable if you are paying a 7.5% premium.

Now some don't pay 7.5%, closer to 4% (e.g I have not done any claims for >4 years)....

This would only make sense if your other alternative is 7.5%. But if you've been accident free a while.. the discounted percentages work better.

It is still good that insurance companies are getting creative in their offerings.

I would think now they need to start including other factors like age, gender in their calculation of insurance premiums. I'm sure their actuaries have some stats that would be useful.


@tuvok Certainly, the more you drive, the higher you will pay, but you will end up making savings in the short-term and in the long term as well. In your example, if you get it at 4%, you pay KES60000. If you do 12000KMs, under PAYD you would pay round about KES87000 for the first year, and much less in your second year.

Remember, you don't need to have 60000/- at the expiry of your cover. You can buy a minimum bundle of 5000KM and top up (via MPESA, Airtel Money, Yu Cash or Orange Money) as you drive. That's also the huge convenience that this product offers.

As you mentioned, the product is also extremely useful for people with more than one car and hence cover little distances on all or some of the cars. The savings here are major.

“Once the last tree is cut and the last river poisoned,you will find you cannot eat your money" Traditional saying.
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