Which car insurance company has the best bonus?

Rating an insurance company to find the best one takes more than comparing the price of premiums. Which car insurance company should you choose for you? The best all-rounder. One with reasonable premiums, low excesses, more benefits, and great customer service. Another great incentive to opt in for is a rewards programme or bonus.

Insurance is a grudge purchase. You’re paying an insurance company to protect you from an event that might not happen, which can often feel like a waste of money. To help you feel less impugned, insurers offer rewards or premiums back in cash. Each insurer offers a unique bonus to give their loyal customers something back. Who has the best bonus?

No claims bonuses

Which car insurance company offers the best no claims bonus? That depends on the term of the claim-free period and the amount of the bonus. No-claims bonuses reward clients by giving them money back for not claiming within a certain amount of time. OUTsurance, for example, pays 10% of the premiums back to clients if they do not claim in three years and then 10% for every additional year thereafter. A good no-claims bonus will offer premiums back if you don’t claim after a shorter period of time and if the percentage of premiums back is higher.

Rewards bonuses

Instead of only paying out a bonus should you not claim for a period, some insurers offer a rewards programme where they pay back premiums on a point basis. Your loyalty earns points and then after a certain amount of time, these points are cashed in. MiWay MiRewards is just one such company. Clients earn rewards by paying premiums, keeping their cover over a period of three years and maintaining their risk profile. Clients can also earn rewards by referring people, shopping and managing their policy online. Which car insurance company has the best rewards program depends on the value of the points and term to cash in. MiWay points are R1 a piece.

Referral bonuses

Some insurers don’t base their rewards on their clients’ claim periods or loyalty, but by recommending their friends. Should a referred friend opt in for insurance, you can earn a percentage of their first or second premium. Budget Insurance Brokers, for example, pay R500 for every friend that you refer that takes out insurance with them 30 days after their first premium is paid. Clients can earn up to R10,000.

Which car insurance company has the best bonus depends on what you value. If you don’t claim, you can earn more from a no-claims bonus than you can from a referral.