Vero and Good Shepherd NZ have extended the pilot run of Drive, a scheme that seeks to provide affordable car insurance to Kiwis on limited incomes. It was initially launched in November 2020 and will run for 12 more months.
Drive aims to provide low-cost car cover for New Zealanders who are excluded from the traditional car insurance market. Vero and Good Shepherd conducted research on some Good Shepherd NZ clients who were borrowing money to buy a car, and then not insuring it. According to the firms, the pilot programme aims to gather further insights, as well as test and develop a product that will provide genuine value to customers.
“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,” said Sacha Cowlrick, executive manager for consumer insurance at Vero. “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 the launch of the trial, the percentage of Good Loan clients taking out Drive cover increased from 6% in November 2020 to 44% in August.
By renewing the pilot for a further 12 months, Cowlrick said Vero will be able to take customers through the renewal process, expand the number of customers taking up the product and give more customers the opportunity to make claims. These activities, she said, will allow Vero to learn more about the value and accessibility of the product.
“Our Good Loans advisors have witnessed first-hand the happiness and feeling of security that access to car insurance provides for our clients,” said Fleur Howard, Good Shepherd NZ chief executive. “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.”