What is a cashback bonus?
Having vehicle insurance often comes with more perks than just cover for your vehicle. Simply put, a cashback bonus is money back in your bank account for being a responsible driver. Nice!
What do you get?
- A cashback bonus is a reward that you get for not claiming from your policy.
- The cashback bonus is paid straight into your bank account after 3 consecutive years that you stay claim-free on your policy.
- You can look forward to up to 10% of your premiums back in your bank account.
What is the catch?
Insurers have tried to encourage responsible driving by adding the cashback bonus to insurance policies. You don’t get the bonus if you claim. Let’s look at this scenario:
- You have a policy for 3 years, with no claims at all. You should be getting your cashback bonus soon, but have just submitted a claim for a bumper bashing that happened on the freeway. Your cashback bonus then falls away entirely, so you lose out on your reward.
The point of the cashback bonus is to encourage responsible driving within policy holders. It is an effective concept, but as the saying goes, accidents do happen.