The King Price challenge for short term insurance

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The King Price Challenge is a unique challenge between King Price and ourselves.

Here’s how it went down:

We were approached by a third party to pitch for an advertorial¹. We’re a plucky bunch and decided that we wouldn’t design a marketing pitch, generate artwork and put together a slogan or whatever on a maybe.

No, no, no! We decided we would put the shoe on the other foot and challenge the client to back up their claim on a random call to their call centre and then honestly and fairly compare the quote and service to our existing insurance.

We’re not sure how confident the client was when they accepted our proposal, or whether they thought there was no backing down now in the face of our challenge but our “pitch” was accepted and the pressure transferred from the client to us. We’re not unhappy with our existing deal, so we thought we’ll call the call centre and see what they can offer us.

Before making the call for car insurance we jumped onto their website and discovered they have a callback feature and since the network (thanks MTN) and the 0860 number were conspiring against us, we chose to use it. A little over an hour passed before the phone rang and we eagerly dived into the quoting process hoping to trip the agent up.

The gentleman was courteous and professional but not dreary or bored like a robot. He even had a chuckle at our poor attempt at humour, which no doubt he’d heard a thousand times before since we all think we’re the cousin, Barry Hilton. He explained the product in a clear and concise manner so that we could follow what was on offer as we compared it to the schedule from our existing insurer.

The Reality

Insurers probably all work with extremely similar risk models worked out by people infinitely more intelligent than we could ever pretend to be. So, let’s get to the nitty gritty. Our existing policy has R 4000 excess, King Price offered a range from R 4500 to R 22500 on the same vehicle. As your excess goes up, your premium goes down. Here’s the catch though, if you can’t afford a higher monthly premium, can you really afford a higher excess? Think about it before you commit. Since we’re comparing products, we asked for the R4500 minimum in our quote.

Our new friend, Godwin, reminded us that every month the premium will reduce as the value of the vehicle drops, this translates into a saving over your first month’s premium, obviously accumulating over the period of the contract. We like this particularly since most insurers just put through an annual increase and if you don’t call them to get a new quote on your insurance you’ll be paying far too much in no time at all.

We are not customers of King Price and the initial monthly premium with applicable discounts, which we receive from our current insurer too, is about R40 higher than our current insurance but we do have to make the effort of calling them annually to remind them that the value of our vehicle has declined substantially and subsequently, their risk, and that we should be paying less not more.

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Assume for a moment that our premium would drop by 2% every month, we would be paying less from month 7 onwards, theoretically for the rest of time and provided your insurance terms don’t change, like a change of address or a claim etc. We must also state we don’t know what the rate drop is and only use 2% to illustrate our example.

As an aside, an Audi dealer recently told us cars devalue at 2% per month, this is something you want to be aware of when paying that annual 6-10% increase your regular insurer thrusts on your already tightening budget.

We emailed our current insurer on Wednesday, November 30th 2016. We’re still waiting for a reply to our “High Importance” mail request. I’ll be investigating my options as soon as King Price sends through the written quotation we requested.

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noun – a newspaper or magazine advertisement giving information about a product in the style of an editorial or objective journalistic article.


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