A Warning to Discovery Insure Clients About the Funder's Account

A word of caution for anyone using Discovery's Insure Funder's Account: either avoid it entirely or be sure to read the fine print with extreme care. In my experience, the account is simply a means to lock customers into three-year cycles, because if you leave before your cycle ends, you forfeit any funds accumulated in the account for that period.

There’s another significant catch. If you don't withdraw the funds from your account at the end of a three-year cycle, any future claims you make against it will be paid from the funds of your completed cycle first, not your current, active one.

I learned this the hard way. I made the mistake of not withdrawing my funds when my last cycle ended. I then accumulated a considerable amount in my new cycle, but when I had a few claims, including a tire change, Discovery settled them using the money from my previous, completed cycle instead of my active one.

While I'm sure this detail is buried somewhere in their terms and conditions, the practice feels completely at odds with the customer-centric ethos Discovery Insure portrays. It certainly rubs me the wrong way.

I now have a choice: wait until April for my next cycle to end, or change insurers now and forfeit more than R20,000. I've opted for the latter—principle is worth more than money.

I know many people who read this won't be able to make the same choice and will be stuck with Discovery until their three-year cycle finishes. For all of you, I strongly suggest you take the cash back at the end of each month rather. It’s a clear reminder that Discovery, like any other insurer, do not have your best interests at heart, regardless of what their marketing claims.