Naked Insurance Car Insurance Review 2021

Published by
Lethabo Ntsoane

Naked Insurance is a subsidiary of Hollard insurance company and all its products are underwritten by Hollard. Today, Hollard redirects its car and home insurance products to Naked Insurance. Hollard aims to provide fast service delivery and prioritize product specialization through Naked Insurance,

Through the use of technology, Naked Insurance has managed to climb its way up in the insurance industry and is now one of the top insurers in South Africa. Naked Insurance provides fully online insurance services and their quotations and claims are conducted online. With the use of the Naked Insurance mobile App, policyholders can make claims easily, add new products and make amendments to current products. 

Naked Insurance Car Insurance doesn’t require any joining fee or administration fee to get started. All you need to do is to request a quote online by taking a few minutes to fill in the Naked Insurance quote inquiry. Excess amounts on car insurance are transparent. You won’t hear of any hidden fees when you make a claim in the future. 

Naked Insurance Car Insurance Summary

Naked Insurance Car Insurance solution provides only online car insurance quotes and claims. The company’s Car insurance is backed by Hollard insurance. Hollard underwrites the Naked Insurance Car Insurance products and guarantees that clients are paid and on time. 

Claims can be made through the Naked mobile app which helps speed up the claiming process as claims can be approved within seconds. 

Naked Insurance Car Insurance Products

Naked Insurance has two types of car insurance products available to the South African public. Car insurance products available include comprehensive car insurance and third-party insurance. Naked Insurance premiums start from as little as R50.00 per month. 

Below we discuss in detail the car insurance products offered by Naked Insurance. 

Comprehensive Car Insurance

Naked Insurance comprehensive cover offers a broader coverage for your car than any other car insurance product offered by Naked Insurance. Comprehensive car insurance covers accidents, theft and hijacking, weather damage, fire, and damage to third-party property. 

Road assistance is also covered on the comprehensive cover. The roadside assistance cover gives you access to a number of services in the event of a roadside emergency within the South African borders. Services are limited to R500.00 per incident. Services that are offered through roadside assistance include:

  • Unlocking your car to get access to keys locked inside a car,
  • Up to 5 liters of fuel when stuck because of fuel,
  • Help change Tyre on the road,
  • Jumpstart of battery,
  • Running repairs,
  • Mechanical breakdown with a cover of up to R500.00, and
  • Electrical breakdown with a cover of up to R500.00.

The comprehensive car insurance covers up to the retail value of the vehicle insured. Your vehicle is covered in full from the beginning of the policy. Drivers other than the regular driver are also covered, these are individuals registered as the drivers of the insured motor vehicle. 

Third-Party Insurance

Naked third-party car insurance is a car insurance product that covers one from third-party personal liability. One is covered by the third party insurance cover for any accidental damage that is done to someone’s car to the extent that the policyholder is legally liable to compensate a third party. 

Naked Insurance’s third-party liability covers policyholders up to R5,000,000.00 for damage to other people’s property. This cover doesn’t cover the policy holder’s own car but protects them financially should they get into an accident that is caused by them. 

The Naked car insurance is affordable but it depends on how much cover one needs. Cover for third-party car insurance starts from as little as R50.00 per month. One can choose to increase or decrease their cover amount at any time so that they can keep up with their third-party cover needs. 

Naked Insurance CoverPause ®

The Naked Insurance CoverPause ® is an extended benefit that one can take advantage of if they are not driving their car. CoverPause gives car insurance policyholders a breather from paying full monthly premiums if their car is parked or if it was involved in an accident and cannot be driven. 

Through the Naked App, policyholders can use the CoverPause to pause their car insurance product subscription. By pausing a car subscription, one will only be required to pay 50% of their premiums instead of 100%. The cover does not include accidental damage, it is limited to theft, Hail, and other stationery risks. 

Advantages of Naked Insurance Car Insurance

  • Policyholders can pause their car insurance policy and only pay 50% of the premiums
  • Cover amounts can be adjusted to the specification of the policyholder.
  • Car insurance premiums from Naked Insurance are some of the lowest in South Africa.
  • The solution comes with free roadside assistance for any of the car insurance products.
  • Different motor vehicles can be insured under the solution.
  • There is transparency in payable excess payment required on claims.

Disadvantages of Naked Insurance Car Insurance

  • There are limited car insurance products available.
  • There are no stand-alone products for watercraft and exotic cars.

Conclusion

Naked Insurance provides an easy way to insure a motor vehicle. Through the company’s website, you can get a final quotation in just 90 seconds if you have the correct information in order. You can customize your quote and choose the cover amount that you want or add an excess cover. 

Naked Insurance doesn’t have any niche car insurance product that separates it from the rest. For example, 1st for women prioritize women, and their insurance products are centered around women and this makes 1st for women the only insurance company in South Africa that deliberately caters to women. With a niche car insurance product, Naked Insurance can do better to get a firm grasp of the market. 

The company, however, prioritizes providing some of the most competitive car insurance quotes in South Africa. Therefore, price cuts are the company’s selling point. The company’s CoverPause may be a differentiator between Naked and the rest of the market as it provides a service that many insurers do not offer.

Lethabo Ntsoane

Lethabo Ntsoane holds a Bachelors Degree in Accounting from the University of South Africa. He is a Financial Product commentator at Rateweb. He is an expect financial product analyst with years of experience in reviewing products and offering commentary. Lethabo majors in financial news, reviews and financial tips. He can be contacted at lethabo@rateweb.co.za

Published by
Lethabo Ntsoane