Vehicle insurance might seem like more of a grudge purchase if you aren’t travelling to work everyday or using your car much at all.
In all honesty, the insurance sector is in desperate need of an update. We’ve already seen services such as Naked which make use of artificial intelligence to offer cheaper premiums and faster payout but today we have something but more, budget friendly.
Vaai.co is a vehicle insurer that offers prepaid insurance for 24 hour periods.
“Instead of paying for car insurance monthly via debit order for the rest of your life, you simply download the free Vaai.co app from the Google Play store and buy the prepaid insurance for 24 hours. You are totally in control and can adjust cover to suit your budget, because having some cover is better than nothing. For instance, for less than the price of two 2 litre cold drinks you get R13 000 cover. If you have more money available, you can buy up to R120 000 worth of cover,” explains Vaai.co co-founder, Thabang Butelezi (pictured).
Cover stars at R40 a day but the exact cost will vary depending on what exactly you need.
In addition to vehicle accident cover, Vaai.co also offers prepaid roadside assistance.
Unfortunately, getting started with Vaai.co isn’t as easy as downloading an app. For one, you will need to purchase a Data Logger that needs to be plugged into your vehicle.
This Data Logger looks like any other on-board diagnostic tool you’d find for a car. We’re curious to know whether this specific model can read and write data or if it’s only able to read the data.
We’d hope that the Data Logger is true to its name and can only be used to read data but we’ve popped a mail along to Vaai to confirm this.
[UPDATE 15:37 8/3/2021] Vaai.co co-founder Thabang Butelezi has told Hypertext that the Data Logger is indeed only able to read data and not write it.
With all that having been said we should point out that with the Data Logger installed, one should assume that Vaai.co will be able to see all the data for the vehicle including what speed you may have been travelling at before an accident.
The upside is that Vaai.co will be able to detect when you’ve had an accident and dispatch emergency services.
Of course, not everybody wants to give their insurer unfettered access to every bit of data from their vehicle. You will have to decide if this trade-off is worth your data and we’re in two minds at this stage.
On one hand – massive savings, on the other – giving an insurer a wealth of data.
We’re going to need some time to decide.
There are some limitations to Vaai.co right now. For one, the app is only available for Android users and Data Loggers can only be ordered for delivery in Gauteng.
These are, to our mind, growing pains and we’re hopeful that Vaai.co is on the road to expansion following its participation in the AlphaCode Incubate programme.
“Vaai.co is right on trend with its insurance on demand concept. We believe that there’s a tremendous need for innovation in the insurance space, particularly during COVID-19 when finances are stretched to the max and existing models are no longer affordable. Vaai.co has developed a compelling solution for South Africans with cars who want cover, but can’t afford traditional insurance,” explains head of AlphaCode and senior investment executive at Rand Merchant Investments, Dominique Collett.
You can find out more about Vaai’s services here.