Qantas car insurance offers frequent flyer points to frequent drivers

The tentacles of Qantas Loyalty are spreading to car and home insurance.

By David Flynn, October 29 2019

Qantas is adding car insurance to the ever-expanding wing of its loyalty arm, and home insurance will follow next year as the airline continues to transform its frequent flyer division into a financial services machine.

The Qantas Car Insurance platform, underwritten by specialist Auto & Genera, will offer comprehensive, third-party property, fire and theft coverage – with the lure of Qantas frequent flyer points to bait the hook in what's often considered a commodity market.

There'll be a sign-up bounty of up to 20,000 Qantas Points, with one point for dollar spent on their premium and up to 6,000 Qantas Points "when members complete tasks that will help keep them and their vehicle safer, via the Qantas Wellbeing app."

These "car safety challenges" will include checking the air pressure in their tyres and their brake  pressure, and when the car is serviced.

“The power of Qantas Points to influence purchasing decisions has seen us expand into new areas including financial services and insurance," says Qantas Group CEO Alan Joyce. "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 the same reason."

Baiting the hook with Qantas Points

Analyst firm IBISworld estimates Australia's annual motor vehicle insurance market to be worth a staggering $21 billion per year, with the four largest players – Allianz Australia, IAG (which underwrites NRMA), QBE Insurance and Suncorp – accounting for 64.4% of industry revenue.

Qantas hopes to be able to peel off a decent slice of that market by promoting car insurance to the 13 million members of its frequent flyer scheme.

"We've got zero percent of that market today, so it's a growth market (for us) and we have the opportunity to take share there," Joyce told Executive Traveller on the sidelines of the Qantas Car Insurtance launch.

The Qantas Insurance portfolio already includes health insurance, life insurance and travel insurance, and the airline has confirmed it's seeking to add home insurance in 2020.

Qantas Loyalty raked in record pre-tax earnings of $374 million in the 2019 financial year, compared to the $285 million pre-tax take of Qantas' international flights – proof that the airline's non-flying arm punches well above its weight. Indeed, Joyce tells Executive Traveller that  by 2022 he expects Qantas Loyalty "to get to $500-600 million in earnings."

Up next: earn Qantas Points at the BP petrol pump

From early 2020 motorists will also be able to earn Qantas Points when filling up their tank at BP service stations, with the petrol giant's new BP Rewards program ousting Virgin Australia for Qantas as its airline points partner.

Drivers will be able to choose to earn BP Rewards points, which can be applied as a cash discount at BP outlets, or to earn Qantas Points directly.

While Australian earning rates have yet to be revealed, BP's rates in the UK are set at one BP Reward Point per litre of Regular fuel and two BP Reward Points per litre of Ultimate fuel, plus one BP Reward Point for every additional £1 spent on goods at the outlet. As a reference point, the 'exchange rate' in BP's UK scheme sees 200 points redeemed as £1.

“Drivers spend thousands of dollars on fuel each year," says Qantas Loyalty CEO Olivia Wirth. "Our partnership with BP is an easy way for frequent flyers to earn points and get closer to their dream trip."

Qantas frequent flyer members will continue to earn points at Caltex service stations via the Woolworths Everyday Rewards program.

Read more: BP, Qantas launch new points-for-petrol rewards scheme

David

David Flynn is the Editor-in-Chief of Executive Traveller and a bit of a travel tragic with a weakness for good coffee, shopping and lychee martinis.

reeves35

reeves35

24 Aug 2011

Total posts 551

Loyalty is a booming business for Qantas but I can't say I'm too excited; their health insurance product is comparatively expensive and the points earned aren't worth the extra cost. I'm not convinced car insurance will be any better.

reeves35

reeves35

24 Aug 2011

Total posts 551

As suspected, the offering is not great. For my vehicle there quote was over $1000 whereas current supplier is around $800. On top of that, the excess was $800 instead of $700 and it was market value not agreed value. Quote told me I'd earn 6800 points by accepting the offer which are worth a whole lot less than the extra $200 I'd be paying.

wannabe_wp

wannabe_wp

Qantas - Qantas Frequent Flyer

22 Mar 2019

Total posts 10

And like their health insurance it seems to be a rip-off. I just did a quote and it would cost $200 more than the exact same policy I took out with another insurer last month.

born2fish

born2fish

01 Apr 2014

Total posts 53

Did a quote as my car insurance is due soon and the premium was about 70% more than my current provider. That was for a mainstream European SUV, 12 moths old with low kms . It is factory stock and not particularly unique, so not sure if they load the premium beacause they see the words V8 Turbo - but even increasing the excess had the premiums way off.

Jazzop

Jazzop

02 Dec 2016

Total posts 84

Qantas are all about collecting your personal data. Don't do it people. Don't take their cards, their insurance and so on.

GBRGB

GBRGB

Qantas - Qantas Frequent Flyer

21 Jan 2014

Total posts 220

I don't trust Qantas to deliver on the service needed for insurance, having had 2 properties and 3 vehicles go under in the Townsville floods I can tell you it's the claims process that is most important, that's what really counts, I don't think Qantas will have the network of people on the ground to deliver a satisfactory outcome when its time to process a claim.

whoppersandwich

whoppersandwich

Qantas - Qantas Frequent Flyer

11 Dec 2017

Total posts 43

Attempted to get a quote but it looks like they've got no interest in insuring drivers under 30!

Joe

Joe

03 May 2013

Total posts 387

Like their airfares, health insurance and now this...over priced aimed at those not using their own money or the gullible. Emirates fares on exact same code shares are much cheaper, health insurance say with HCF is much cheaper and better value, now this, car insurance. I insure through a broker and you will be surprised how much cheaper than Qantas will be for exact same level.

JKH

JKH

Qantas - Qantas Frequent Flyer

23 Sep 2017

Total posts 131

About to get a quote myself but have been advised by colleagues that they were unable to get Agreed Value quotes. Have others found this the case?


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