Car owners in Kenya can now experience usage-based insurance that allows people who drive less to pay lower insurance premiums.
One of the products available in the Kenyan market is TIA Switch, which uses telematics technology to offer custom insurance coverage for drivers who drive their cars for less than 10,000 kilometres per year.
For years, it did not matter whether you drove your car once a week or you were always on the road - your insurance premiums in those two scenarios would be relatively the same regardless of usage.
As a car owner driving say 8,000 kilometres annually, you pay the same insurance premiums as someone who clocks 30,000 kilometres every year if your vehicle type, value and perceived personal risk level are near-similar.
But this is slowly changing, in Kenya and globally, as the insurance industry embraces innovation and technology to give consumers more choice.
In this article, we explore the latest entrant in the Kenyan insurance company that is offering this innovative service - TIA Switch - to help you decide, especially if you drive less than 10,000 kilometres a year, whether this is the right insurance type for you.
The basic eligibility requirements include:
Some of the people who may fall into this category include:
TIA Switch is an insurance product underwritten by Takaful Insurance of Africa and powered by AiCare. It is regulated by the Insurance Regulatory Authority (IRA). It uses telematics technology to offer discounted premiums for Kenyans driving less than 10,000 kilometres in a year and those who are intent on maintaining safe driving.
The company’s pricing model seeks to give a discount to drivers whose cars are exposed to less risk on account of little use and careful driving. This information is confirmed through a telematics box that is installed after a customer purchases the TIA switch insurance cover.
The telematics box is installed after the purchase of an insurance cover and remains there for the life of the policy. You do not need to have it re-installed in subsequent renewal of the policy.
The telematics box keeps track of the kilometres travelled, although it does not keep a record of places visited, as the company tells Money254.co.ke.
It uses telematics technology to share feedback with drivers on their driving skills and areas where they can improve, with regard to safe driving skills. The feedback is shared through a mobile app that you can install on your phone after having the telematics box installed.
The box may also be used to send out an alarm in instances where you are in danger, such as when your car is involved in a serious or fatal accident, or when you are reported to be in grave danger.
The whole process is also fully online, from registration to the claims process, which eliminates the hassle of having to fill in tedious paperwork when you need to make a claim.
In the past, if you were driving a 2009 Toyota Harrier with a valuation of Ksh1 million, and driving it for 50 kilometres a week - you would pay the same premiums as someone who has the same car model, valued at Ksh1 million, but driving it for 500 kilometres a week.
TIA Switch has a business model where the cost of insurance is not generalised. Through the use of telematics technology, TIA Switch works on a pricing model where those who drive on the road less, also pay less.
TIA Switch informs Money254.co.ke that their premiums are up to 20% cheaper than the traditional insurance.
For example, if you are paying Ksh84,000 in premiums for a car that drives less than 10,000 kilometres every year, then you are paying Ksh72,000 more than you would be paying through TIA Switch’s cost-saving pricing model.
In addition, TIA Switch comes with an inbuilt Insurance Premiums Financing (IPF) feature.
Usually, when you make an insurance claim, you might have to pay a certain amount of money from your own pocket before the insurance provider steps in. This amount is called the "excess."
However, with an "excess protector," you don't have to worry about paying any money from your own pocket. Typically, this is an add-on cover that you need to pay for in addition to your regular insurance cover if you want to opt in and enjoy this convenience in the event you were to make a claim.
With a TIA Switch insurance cover, you do not need to pay extra to obtain an “excess protector’ since this comes bundled with the discounted cover.
So, with TIA Switch, you not only get a discounted insurance cover if you drive less than 10,000 kilometres annually, but you also do not need to pay for the excess protector.
More people are embracing products that save them from tedious paperwork. A paperless engagement is oftentimes more time-efficient and less mentally taxing
The TIA Switch cover is fully digital, which makes it easier to apply, make a payment, and make your claims when needed.
The telematics box that comes with the TIA Switch insurance cover is able to monitor your driving skills and make recommendations through the mobile app.
Whether a new or an experienced driver, road safety is increasingly a life-saving reality for drivers. The feedback provided, therefore, can offer actionable insights to help you become a safer driver.
Some of the driving mistakes that affect the security of your car can also result in higher fuel consumption meaning insights from the telematics box can potentially help you reduce your fuel bill.
The TIA Switch cover comes with other benefits including:
Step 1: Fill in basic details about your vehicle and mileage information to check if you qualify
Step 2: Get an online quote with the discounted rate and pay with card or M-Pesa
Step 3: TIA Switch sends a technician to your location in under 45 minutes to do the installation and valuation. (This could be done in your home, office, or on the go in Nairobi. If we can’t come to you, we will send you to the nearest installation and valuation center.)
Step 4: You are all set! You get a digital certificate in your email, print and display your new sticker.
Step 5: Download the mobile app. Monitor kilometers, and get safe driving tips.
Would you consider the TIA Switch insurance cover? You can start your application here: