The value of ones car decreases with every month that passes, and every kilometer driven. The question is: why can’t the insurance premiums also decrease?
After all, the insurance only needs to cover the current value of the car (or any other asset) and not the amount originally paid for it.
It sounds so logical, but no one had ever thought about it. Well, no one that is, until Gideon Galloway, CEO of King Price, offered car owners the option of decreasing their premiums month by month.
In an interview on Moneyweb, Gideon explained: “It just isn’t fair on car owners. Why should they have to be paying the same premium on their older car as they did when it was brand new?”
“Some insurers say that they’ll review your policy after a few years, but that is solely at their discretion, when they feel like it, and for an amount that they might or might not determine,” Gideon said. “It’s all pretty vague, and as a car owner the odds are stacked against you.”
“With King Price though, these regular decreases are written into your policy.”
When asked how it makes business sense for them as a company to keep decreasing premiums, his answer was simple, but profound.
“If you treat people fairly, and give them the best deal you can, then those people won’t take their business elsewhere (which is what we’ve seen with King Price).”
“And by making customers for life, our business is a lot stronger, and on a better footing, than by trying to charge as much as we can month by month.”
Gideon summed it all up when he said: ”We’re in this for the long haul, not the short term, and our clients really appreciate it. It’s a win-win situation”
But can this be applicable in Nigeria and other African countries???
Source: Mzansi Review
