Airline Flies into Motor Insurance

Australian Airline Qantas has launched into the insurance sector with a new motor product and the promise of points that can be converted into flights.

Under the scheme policyholders will be rewarded with Qantas Points for performing brake and tyre checks and booking their car in for a service. The insurance will be provided by Auto & General with Qantas Loyalty providing marketing. The incentives are designed to focus in better car maintenance after the airline conducted research with its frequent flyer members.

It will offer Comprehensive, Third Party Property, Fire and Theft and Third Party Property Only cover. Members can tailor their level of protection to suit their needs and budget.

The move comes after the airline looked to add the points as an incentive to focus in better car maintenance after the airline conducted research with its frequent flyer members.

It found a quarter (24 per cent) admit they never check the air pressure in their tyres, a third (37 per cent) don’t know how to assess the condition of their brakes and 14 per cent always put off booking in their car service.

Over half (55%) of respondents said they drive their car at least once per day, and an additional 30 per cent drive their car up to five times per week. More than half (57%) only service their car once or less per year.

Qantas added the biggest barriers to regular car maintenance include the perception that one professional service each year is enough (31%), waiting until a problem occurs before getting it fixed (22%) and not knowing what they’re supposed to be testing or checking (21%)

The product will be offered to the airline’s 13 million frequent flyers and they can earn up to 20,000 Qantas Points when they sign up for the motor cover, as well as one point for every dollar spent on their premium. Up to 6,000 additional points can also be earned when members complete tasks that will help keep them and their vehicle safer.

Qantas Group CEO Alan Joyce (pic) said that continually expanding ways to earn points has made Qantas Frequent Flyer one of the most successful loyalty programs in the world.

“The power of Qantas Points to influence purchasing decisions has seen us expand into new areas including financial services and insurance. That’s opened up new revenue opportunities for us and new ways for members to get closer to their next holiday or upgrade.

“These are competitive products that have the added benefit of earning points, and we’ve seen that work well with health insurance and credit cards. We expect Qantas Car Insurance to be popular for same reason.

“Insurance can be a grudge purchase but in the first year of having Qantas Car Insurance you could earn enough points to fly from Brisbane to Singapore or Sydney to Bali.

“Qantas has a proud safety reputation, which is why motorists who insure their car with us will be rewarded for maintaining a safe car,” said Mr Joyce.

Road Safety Expert Dr Darren Wishart added: “We all share a responsibility for ensuring safety on our roads, which is achievable not only through safe speeds and safe drivers, but safe vehicles as well.

“Road conditions in Australia can vary greatly, so simple things like checking the air pressure in your tyres is a small but critical step that can be done to help keep you safe on the road.”

Qantas Insurance said it will look to expand its portfolio to include home insurance in 2020.