Insurance in South Africa has never been short of competition, but two companies seem to constantly pop up in conversations with friends, colleagues, and even those casual chats at braais: OUTsurance and King Price. Each has its own little “hook,” a unique selling point that sets it apart in the minds of customers. For OUTsurance, it’s the much-talked-about OUTbonus, that cash-back feature they proudly advertise. For King Price, it’s the quirky idea of decreasing premiums—the longer you insure with them, the less you pay each month for certain policies.
At first glance, both sound like winning deals. Who doesn’t want extra money back, or smaller monthly bills? But if you’ve ever actually tried to compare them while shopping for insurance, you’ll know it’s not as simple as picking whichever sounds cooler. There are small print details, different timelines, and practical realities that change the way each perk feels once you’re actually living with it.
I’ve had conversations with family members who swear by OUTsurance because of that cash-back reward, while others are charmed by King Price’s cheeky ads and decreasing premiums promise. I’ll admit, I’ve gone back and forth myself—at one point I even had car insurance quotes from both on my kitchen counter, highlighter in hand like I was studying for an exam. What follows is not just a breakdown of how these benefits work, but a bit of a reality check on what they might actually mean in everyday life.
What Exactly Is the OUTbonus?
Let’s start with OUTsurance. Their OUTbonus is basically a loyalty reward: stay claim-free for three years, and they’ll give you 10% of the premiums you’ve paid back in cash. It’s kind of like insurance saying, “Hey, thanks for not costing us too much—here’s a little something for your trouble.”
On paper, that sounds fantastic. Imagine paying R5,000 a year in premiums. Over three years, that’s R15,000 total. If you never claim, OUTsurance will hand you R1,500 back. That’s a weekend getaway covered, or at least a good portion of your December shopping spree.
But here’s the catch—and people sometimes gloss over this: if you claim during those three years, the OUTbonus resets. Suddenly you’re back at zero, waiting another three years to start the cycle again. Life, unfortunately, isn’t always neat enough to go three years without an incident. Even a small fender bender or a smashed window can reset the clock.
I once had a friend who was giddy about her first OUTbonus payout. She’d been insured for years, had never claimed, and finally got that cash-back. Two months later, her car got side-swiped in a parking lot. She laughed (a little bitterly) telling me: “If that had happened before the bonus came in, I’d have been gutted.” That kind of timing luck really highlights the gamble baked into the OUTbonus system.
How Do King Price’s Decreasing Premiums Work?
King Price approaches things differently. Instead of dangling a reward in the future, they give you a smaller and smaller bill every month for certain types of insurance (like car cover). The logic is simple: as your car gets older, its value decreases, so why should you keep paying the same premium to insure it?
It’s clever marketing, but it’s also fairly rational. A 2018 Toyota Corolla worth R250,000 isn’t going to be worth that much five years later, and if you wrote it off, the insurer would only have to pay out its depreciated value anyway. So King Price’s pitch is: we’ll charge you less, in line with that depreciation.
I remember when a colleague showed me his King Price bill—it really was a little smaller each month. Not massive changes, but over the course of the year, it added up. “Feels like they’re rewarding me in real time, not making me wait three years,” he said. That immediacy is appealing.
Still, there are nuances here too. Not every premium decreases forever. Some parts of your policy (like third-party liability cover) don’t shrink because the risk doesn’t reduce over time. And the decreases, while steady, aren’t life-changing drops. We’re often talking a few rands shaved off here and there, though over years it can make a noticeable difference.
Comparing Apples and Oranges—or Maybe Oranges and Nectarines
So, which one’s better: a juicy cash-back every three years, or a slow-and-steady discount each month? That’s where it gets tricky, because the answer depends on your personality, financial habits, and how lucky (or unlucky) you are with claims.
If you’re the type who’s disciplined with money, the OUTbonus might suit you. You’ll see it as a kind of forced savings account, a little pot of gold that arrives every three years as a reward for your cautious driving and clean insurance record.
On the other hand, if you prefer the feeling of immediate gratification (and who doesn’t, to be honest?), King Price’s decreasing premiums may feel more satisfying. There’s a psychological boost in seeing your bill shrink, even slightly, without having to wait years.
But here’s a thought: some financial advisers argue that the OUTbonus isn’t as generous as it first appears. Ten percent over three years is effectively about 3.3% a year. If you’d just taken that extra premium money and invested it elsewhere—even in a modest savings account—you might have earned as much, or more. King Price, by contrast, isn’t promising to give you money—they’re simply charging you less in the first place.
Real-Life Scenarios: When Each One Shines
To make this less abstract, let’s play out two scenarios.
Scenario 1: The Careful Driver
Say you’ve been driving for years without any accidents. You’re cautious, you don’t park on dodgy streets, and luck seems to be on your side. For someone like this, the OUTbonus could work beautifully. Three years fly by, and suddenly you’ve got that payout sitting in your bank account. If you manage to keep claims to a minimum, this cycle can repeat, and it feels like the insurer is rewarding your good habits.
Scenario 2: The Unlucky Commuter
Now imagine someone who drives in heavy traffic every day, dodging potholes and taxis, where accidents—big or small—are almost inevitable. That person is far less likely to ever reach their OUTbonus payout, because one claim resets the whole timeline. For them, decreasing premiums at King Price might make more sense, because they’ll see some benefit regardless of accidents. Even if they claim, their premiums would have already been dropping before that point.
Marketing vs. Reality
It’s also worth acknowledging that a lot of the appeal in both these offerings is psychological. OUTsurance leans heavily on the idea of a tangible reward—actual cash in your pocket. Their ads often feature real people celebrating payouts, which creates a sense of aspiration. King Price, by contrast, plays up the “fairness” angle, with their quirky brand voice asking why you should pay the same for a car that’s worth less each year.
Both are clever because they shift your focus away from the core truth of insurance: most of us will pay in more than we ever get out, unless we have a major claim. These perks soften that reality, but they don’t fundamentally change it.
My Own Wavering Thoughts
Personally, I’ve been torn between the two. I liked the OUTbonus idea at first—there’s something fun about getting a chunk of cash back. It feels like a mini lottery win, even though it’s technically just a refund of your own money. But I also hate the idea of waiting years for something that could vanish with one unlucky incident.
When I looked at King Price, the decreasing premiums felt more practical. I could see the savings month by month, and there was no waiting game. Yet, at the same time, the drops weren’t so dramatic that they made me feel like I was winning big. It was more of a slow drip than a big splash.
In the end, it almost felt less about which one “pays better” and more about which one matches my own psychology. Do I want to be rewarded for patience and caution, or do I want a small, ongoing nod that I’m being treated fairly as my car loses value?
A Subtle Critique
Some critics argue that these features are, in a way, distractions. OUTsurance’s OUTbonus, while appealing, locks you into staying with them long-term if you want to see the reward. King Price’s decreasing premiums, while nice, don’t always add up to as much as you’d expect once you crunch the numbers. In both cases, you might be better off simply comparing the base premiums, excess fees, and customer service track records before making a decision.
After all, an insurer who charges you R200 less per month upfront (without any gimmicks) could easily beat both models over time.
Final Thoughts
At the end of the day, choosing between OUTsurance and King Price isn’t just about picking between cash-back and decreasing premiums. It’s about how you think about money, how often you expect to claim, and whether you prefer rewards that feel immediate or delayed.
For the cautious driver who rarely claims, OUTbonus can feel like a nice pat on the back every three years. For the everyday commuter facing unpredictable roads, King Price’s shrinking bills may feel like the safer bet.
And then there are people like me, caught somewhere in between, forever squinting at quotes and wondering which “perk” is actually worth more in the messy reality of everyday life.