Example

John Dlamini is a 38 year old financial manager who travels approximately 500 kilometres a month. Based on his personal profile, his car insurance premium is R624 a month for the Drive500 plan. For additional kilometres travelled in excess of his DrivePlan kilometres John will pay 23c per kilometre.

John’s allocated kilometres each month are as follows:

  Allocated kilometres Premium
Drive500 plan 500 R624,00
10% bonus kilometres 50 R0,00
Additional charge once DrivePlan
kilometres have been exceeded
per kilometre 23c
Total allocated kilometres 550  

Over the past three months John has travelled the following distances:

  Kilometres travelled
Month 1 477
Month 2 535
Month 3 565
Total 1 577

John’s DriveSave Account has operated as follows:

  Allocated kilometres Kilometres travelled DriveSave Account balance
Month 1 550 477 73
Month 2 550 535 88
Month 3 550 565 73
Total 1 650 1 577 73

When John exceeded his kilometres in month three he was able to use kilometres that he had saved in his DriveSave Account to cover this additional distance.This means that no additional premium was charged in month three.

Over the three month period John has managed to save 73 kilometres, which he can use in the future.

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