KOBA Insurance Launch

Aussies can now pay for their car insurance by the kilometre

Aussie insurtech start-up KOBA has announced that their real-time, kilometre-based insurance has launched.

KOBA customers get comprehensive car insurance, that is unlike traditional models. Consumers pay an upfront cost to cover their vehicle while parked, and only a few cents per kilometre as they drive.

Andrew Wong, Founder of KOBA, says “Today is a significant day in car insurance in Australia.”

“Our pay-per-km product has been over 12 months in the making, and we’re excited to be here at the start-line, offering a very different approach to car insurance to the Australian public; something we believe is a fairer, more transparent approach. Pay-per-km insurance is something that’s transformed the car insurance landscape in overseas markets and we’re looking forward to seeing how it will perform here in Australia also” said Wong.

Recently recognised as one of the top 10 insurtech leaders in Australia, KOBA facilitates their pay-per-km model through a KOBA Rider – a small matchbox-sized device – that attaches to the car’s OBD port. This communicates with KOBA’s smartphone app to automatically calculate driving distances and charges a per-kilometre rate for each trip.

“As part of your quote, we may charge you $300 to cover your car for the year while it’s parked. Then, we may charge you 5¢ per kilometre. Right now, you might only be driving to the supermarket and a picnic once a week; and wind up driving 200km in one month. At 5¢ per km, that would be $10 for the month for your driving premium. For the first time, we are putting the customer in control of their premiums. Customers decide how much they pay, if they drive less, they pay less. ” Nick Bell, Head of Insurance + Underwriting, added.

KOBA hopes to emulate the success of pay-per-km (or pay-per-mile) models in the US and UK, which have transformed the car insurance landscape, and is priced uniquely for low-usage drivers who KOBA believe pose less risk and are involved in fewer accidents.

As a young insurance startup, KOBA is also looking to reset the relationship consumers have with their insurers, creating additional free services in the future that help consumers care for their care..

Additional services will include safety reports which highlight driving habits, car-care alerts for when you should go in for a service, low petrol alerts, or a greenhouse gas emissions tracker to help you understand your driving impact on the environment.

With the majority of Australia now returning to ‘COVID-normal’ many are keeping their reduced driving habits as a result, due to increased work-from-home flexibility, or more availability of grocery home deliveries supporting this change, Wong believes now is the right time for KOBA to launch.

Wong finishes by saying ‘Every industry is being digitised and KOBA is excited to pioneer these changes in the Australian insurance industry. Cars now have powerful computers onboard, can drive themselves, and are getting safer through smart technologies. At KOBA, we want to build a product that unlocks these modern benefits and seek to simply make insurance smarter too”.

KOBA has been on the up and up this year, raising $1M in 5 days from crowd-source funding platform Birchal, as well as an additional $750K from angel investors.

KOBA is underwritten by eric insurance, a leading Australian general insurer with more than 20 years experience, and a proud member of Insurtech Australia and Fintech Australia.

To learn more + get a quote for pay-per-km insurance, visit

kobainsurance.com.au