Vero And Good Shepherd NZ Recommit To Affordable Car Insurance Trial

Vero and Good Shepherd NZ have announced an extension to the pilot of Drive, an affordable car insurance product designed to support Kiwis on limited incomes.

Drive, initially launched in November 2020, is a comprehensive car insurance product that aims to provide affordable cover for New Zealanders who are excluded from the traditional car insurance market. The product is the result of extensive research into why some Good Shepherd NZ clients were borrowing money to buy a car, and then not insuring it. The aim of the pilot programme is to gather further insights, and to test and develop a product that will provide genuine value.

Sacha Cowlrick, Executive Manager Consumer Insurance at Vero says that demand for Drive has consistently grown throughout the first 12 months of the pilot.

“It’s been a pleasure working alongside Good Shepherd NZ over the past year to provide positive outcomes for their Good Loans clients, and to learn together how to use insurance to support the financial resilience of customers experiencing vulnerability,” she says.

“The extension of the Drive trial will allow us to continue to focus on financial inclusion in our community and build our knowledge of how we can meet the needs of these customers.”

Since it was launched, the percentage of Good Loan clients taking out Drive cover has increased from 6% in November 2020 to 44% in August 2021.

Fleur Howard, Good Shepherd NZ Chief Executive, says the trial of the Drive product is already helping its clients to protect themselves from the financial and social wellbeing-related impacts of a car accident.

“Our Good Loans Advisors have witnessed first-hand the happiness and feeling of security that access to car insurance provides for our clients,” she says. “Once clients learn that they have the option to get affordable car insurance at the same time as their loan, we very often see that it’s not only a yes – it’s total relief and peace of mind for them.”

Cowlrick says that by renewing the pilot for a further 12 months, Vero will be able to take customers through the renewal process, extend the number of customers taking our the cover and take more customers through claims – all of which will allow the Vero team to learn more about the value and accessibility of the product.

Drive is a comprehensive car insurance product that during this trial is available to Good Shepherd NZ clients who are taking out a Good Loan of up to $5000 to purchase a second-hand vehicle. Premiums are fixed at just $8 per week and customers don’t pay any excess on their first claim, ensuring that customers can have a conversation about excesses and understand how they work before one needs to be paid. The ability for customers to pay weekly rather than monthly also sets the product apart, giving customers a clearer idea on how much of their income is going towards their insurance each week.

The policy also allows for any driver as long as they are complying with their licence conditions and has some more relaxed application criteria than standard policies.

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