Fintech offers auto insurance by mileage and other news

Published by
Peter Kavinsky

The fintech insurer aims to help Australians solve the cost of living problem by offering comprehensive vehicle insurance charged per kilometer driven.

Comprehensive auto insurance customers pay KOBA an upfront payment of approximately $300 to cover damage to their vehicle while it is parked, and the insurance is then calculated based on the mileage driven.

KOBA note usage is measured using a small, matchbox-sized device called the KOBA Rider that plugs into the car’s OBD port.

The OBD port is often located in the driver’s footwell under the steering wheel and is typically used to diagnose electrical or engine problems.

The attachment then interacts with the KOBA smartphone app to automatically calculate the distance and charge per kilometer for each trip.

The KOBA app pictured below works similarly to Uber in that users can see a breakdown of their trips.

Source: KOBA

KOBA founder Andrew Wong said people are using their cars less since the pandemic, with some still working from home a couple of days a week, while others are taking advantage of the reopening to fly overseas.

“Their car is sitting there, unused and worth the money,” Wong said.

“If you drive less and shorter distances, why should you pay as much for car insurance as everyone else?

“In the current climate, this is a great way for people to keep track of their insurance costs because they can see costs as they occur.”

KOBA insurance costs – does it make sense?

KOBA notes that customers can pay as little as 3 cents ($0.03) per kilometer, with the total cost calculated at the end of each month.

In addition, if a motorist drives more than 250 km per day, KOBA claims to bear the cost of the remaining kilometers driven.

The same applies if someone drives more than 1,750 km per month, with KOBA paying the bill for the remaining kilometers of the month.

ABS data shows that passenger cars drive an average of 11,100 km per year, or 925 km per month.

Using this average, and assuming daily travel does not exceed 250 km, a basic policy would cost $633 per year ($333 for distance insurance plus $300 for parking).

Regardless of the insurer, the cost of a policy is highly dependent on the driver’s age, experience, faults, location, and other factors.

KOBA insurance details

KOBA is insured by Eric, some of its insurance coverage includes:

  • Accidental loss (including theft)
  • Incidental damage incurred during the period of the policy as a result of accidental damage, collision, fire or explosion, flood or flood, storm or hail, theft or attempted theft, vandalism or malicious act and earthquake.
  • Replacing a new car – iIf your vehicle is scrapped within the first 24 months after registration and has less than 40,000 km, KOBA will replace it with a new one.
  • Emergency travel and accommodation up to $500 for accommodation and travel if you are more than 200 kilometers from home and your vehicle cannot be driven.
  • Child Seats – Damage to child seats as a result of a claim up to $500 per unit and not more than $1,000 in total.
  • Rent a car after theft at eligible requirements, for a maximum of 14 days, up to $70 per day.

For full details of the intricacies of KOBA’s policy and to decide if this product is right for you, be sure to read the KOBA Product Disclosure Statement.


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Image of Sarah Brown via Unsplash

Peter Kavinsky

Peter Kavinsky is the Executive Editor at cablefreetv.org

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