Understanding the OUTsurance OUTbonus: What is It and How Does It Work?

While most insurance companies only provide payouts when something goes awry, OUTsurance stands out by offering a cash reward known as the OUTbonus to policyholders who go without making any claims.

The OUTbonus returns 10% of your premiums after three consecutive years without a claim, followed by another 10% after an additional two claim-free years, with continuous payouts every year you remain claim-free.

This approach fundamentally alters how many South Africans perceive insurance.

Car insurance is often seen as a monthly expense that yields no returns unless an incident occurs. The OUTbonus flips this notion by rewarding you with cash for remaining claim-free.

It’s not a discount – it’s cash back

The OUTbonus is not a points system or a marketing gimmick; it represents a genuine cash payout, determined by your claims history and paid premiums. This applies to OUTsurance’s short-term insurance products, including car, home, pet, and business insurance.

Here’s how it operates:

• Remain claim-free for three years, and OUTsurance will pay you 10% of the premiums you’ve paid during those three years.
• Stay claim-free for an additional two years, and you will receive a second payout.
• After that, each subsequent claim-free year nets you another payment.

OUTsurance has distributed over R8.4 billion in OUTbonuses to date.

The OUTbonus is not a mere promise; it’s an integral aspect of the way the company operates.

How much can you expect back from the OUTbonus?

Take, for example, a policyholder who pays R1,500 each month for car insurance – amounting to R18,000 annually.

If they refrain from claiming, here’s what they might receive:

When	What it’s based on	Payout
After three years	10% of 3 years’ premiums	R5,400
After five years	10% of the next 2 years’ premiums	R3,600
Every year after that	10% of that year’s premium	R1,800 per year

These figures are illustrative and do not account for annual premium increases.

Over the course of a decade, this could total R18,000 back – equivalent to a full year’s premium, in cash.

Your specific premium and cash back amount will vary based on factors like policy changes, car type, location, and your driving history, as well as the annual premium adjustment, but the 10% rule and payout timeline remain constant regardless of your premium cost.

A higher premium simply translates to a larger cash return at each milestone; a lower one results in a smaller amount, but the same rate of return.

This distinction is key: the payout isn’t derived from the stock market or interest rates. It’s money you receive simply for managing your risk and refraining from making claims. It doesn’t necessitate extra investments or taking on additional risks to earn it.

The impact of claims

The OUTbonus serves as an incentive for maintaining a claim-free status. However, when a claim is filed against your policy, it may reset or interrupt your claim-free duration, potentially delaying your next OUTbonus payout.

This does not imply that you should avoid making legitimate claims.

Insurance is designed to protect against losses, particularly in cases of write-offs, serious accidents, or theft that could impose significant financial burdens on you and your family.

Does the OUTbonus function similarly for business insurance?

Not exactly. When insuring a business with OUTsurance, different rules apply.

Rather than requiring zero claims to earn a cash OUTbonus, your business coverage is assessed based on its claims ratio – the balance between what you’ve claimed and what you’ve paid in premiums over a rolling three-year period. Maintain a healthy ratio, and you can still qualify for an OUTbonus, even if you’ve made a claim or two.

This offers a more realistic view of commercial risk than a strict zero-claims requirement – businesses with more assets and moving parts are far more likely to need to claim at some point compared to an individual driver.

How can you monitor your OUTbonus?

No need for manual calculations. The OUTsurance App allows you to monitor your claim-free years and track your accumulating OUTbonus in real time.

The bottom line

Your premium remains unchanged. Your coverage is stable. What shifts is the mindset: instead of viewing insurance solely as a benefit during adverse events, it now becomes a reward for positive outcomes.

If you’re with OUTsurance or considering a switch, it’s worthwhile to crunch the numbers.

OUTsurance is a licensed insurer and FSP. The OUTbonus is a standard feature, paid only after three claim-free years and is premium-dependent. Data sourced internally since 1998.

Brought to you by OUTsurance.

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