Dial Direct's Bucks Back Bonus Most Popular

Dial Direct Insurance, specialising in household and car insurance, recently had independent research conducted to identify the most preferred of three alternative cash-back "Bonus" schemes that are available in the short-term insurance market. The national research sample was comprised of consumers buying short-term insurance. The objective was to compare the benefits provided by three of the most prominent cash-back "Bonuses" in the market - without mentioning who they were offered by - to identify the "Bonus" that was most preferred. The finding was that Dial Direct Insurance's Bucks Back Bonus was the most preferred by 65% of consumers that were sampled - a significant finding.

The study was conducted in three of the major centres in South Africa , namely Johannesburg , Cape Town and Durban . Only those people interested in buying short-term insurance were questioned. "While conducting the research, it was interesting to note that many people are confused with regards to these three cash back products that are offered in the market place. However, once all three's benefits were explained, Dial Direct Insurance Bucks Back Bonus was noted as the most rewarding 'reward', for the consumer's short-term insurance outlay," adds Lenerd Louw, director of Dial Direct.

Furthermore, in order to ensure a valid result, Dial Direct employed the expertise of an independent statistician, who compared the payouts of each of the three bonus offerings. "Given the level of confusion in the market, this was done to determine which of the 3 bonus schemes actually led to the most money being returned to a client at the end of the required claim-free period. Three models were built to simulate the payouts based on each Bonus' unique payout rules.

"These models included equal premiums, with the same annual increase in premiums for each company and the opportunity to reinvest early payouts to earn interest. Dial Direct was found, through a variety of scenarios, to pay out substantially more than its two competitors," concludes Louw.

In addition, unlike other short-term insurance companies, Dial Direct policyholders will not be penalised if they submit certain claims which fall into permitted categories. Some of these categories include vehicle theft if the vehicle is fitted with a tracking system or windscreen chip damage.