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Vero, Good Shepherd NZ extend affordable car cover pilot

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Vero and Good Shepherd in New Zealand have extended a product trial aimed at providing affordable car insurance to people on limited incomes following positive early take-up.

Drive was developed after research into why some Good Shepherd NZ clients were borrowing money to buy a car and then not taking out insurance.

“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,” Vero Executive Manager Consumer Insurance Sacha Cowlrick says.

The 12-month extension will see Vero taking customers through the renewal process, increase the number of people taking out cover, and provide more insights on claims as the value and accessibility of the product is assessed.

Customers taking out a Good Loan of up to $NZ5000 ($4802) to buy a second-hand car will be able to pay a fixed premium of $NZ8 ($7.60) a week, rather than having monthly payments. Trial participants also don’t pay an excess on their first claim.

“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,” Ms Cowlrick says.

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