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Is car insurance the new Netflix?

Posted: 1 September 2020 10:09 am
News

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Bingle is now offering cover as a monthly subscription - and it's not the only company changing its ways to appease millennials.

Over the past few years, companies of almost every kind have been adapting to suit the needs of customers who want easy to use, on-demand services which can also be customised. Now, it seems car insurance is finally catching up.

Bingle, a car insurance brand owned by Suncorp, has launched a pilot project which offers month-to-month, cancel any time car insurance policies. The aim, it seems, is to make car insurance more like your Netflix subscription.

Dubbed Bingle Go, the new project is entirely app-based and makes it easy for users to pause their policy month-to-month. If they decide they won't be using their car for a while, they can switch off cover without any cancellation fees.

The project also rewards drivers when they ditch their car for the daily commute. Using telematics, the app tracks journeys and identifies the method of transport. Travel regularly without your car and you could see discounts of up to 20% on next month's premium.

Risk and reward

Although a cancel any time approach can be great for those who rarely use their car, there are drawbacks. While the majority of risks happen on the road, a vehicle can still be damaged while it's sitting on the drive. Pausing cover would remove protection for theft, damage, or even a heavy hailstorm that could batter a car's bodywork.

Further, because the premium is calculated monthly and uses telematics, it may change without you realising. You'll have to keep an eye on the renewal price, or you could end up being charged more than you originally bargained for.

Customised cover

Of course, Bingle Go isn't the first Australian car insurer to offer more custom policies. Poncho and Carpeesh entered the market in the past 12 months and have been hailed as low-cost providers which also rely on telematics.

However, that's not the case for everyone. As telematics tracks driving habits, you could see your premium increase if you're determined to be driving recklessly. That could include things such as sudden or sharp braking as well as speeding and swerving.

Even companies that are yet to adopt telematics are doing their best to offer custom cover. Finder research uncovered 11 different car insurers which reward drivers for lower mileage, with the potential to save hundreds of dollars a year.

How the prices stack up

With Bingle Go currently offering heavily discounted policies as a sign-up incentive, the brand is leading the pack when it comes to cheap cover. Just remember, pricing is dynamic so next month's premium might be higher - or lower - than this month's.

BrandQuoteGet a Quote
Bingle Go$35.19
Budget Direct$96.53Get quote
Bingle$54.82Get quote
Qantas$104.82Get quote
Youi$150.11Get quote
Stella$88.27Get quote
Coles$96.34Get quote
Virgin$98.30Get quote
Poncho$50.97Get quote
Real$125.72Get quote
Kogan$125.72Get quote

This quote table was created using the driver profile of a 30-year-old Sydney woman, seeking comprehensive insurance for a 2015 Toyota Corolla.

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