Bait-and-Switch: Naked's App quotes R135, but their system forces R177 for HALF the cover.

I am utterly disappointed and frustrated with Naked Insurance's deceptive pricing tactics.

I received an auto-renewal email stating my iPhone 13 premium was going up to R176 pm, and my excess was being doubled from R2,000 to R4,000.

To avoid over-insuring my older phone(which is what they always preach), I went into the Naked app and did exactly what you are supposed to do: I updated my insured value from the outdated R16,000 down to the actual iStore refurbished replacement cost of R9,000. I kept my excess at R2,000.

The app confirmed the update and quoted me R135 pm.

An hour later, I received an automated email from Naked stating: "Your premium will increase from R135 to R177 on 7 December."

Let's look at the absolute **************** of this math:

Initially I was paying R163 for R16 000 with R2000 excess · Automatic change to my cover for a depreciating phone knowing very well that should I lose my phone they won't give me the full amount even after deducting an excess: R176 pm for R16,000 cover (R4,000 excess). · My new reality after updating on the app: R177 pm for R9,000 cover (R2,000 excess).

I halved my cover, reduced my risk to Naked, and their system actually wants to charge me more than their initial offer. When I queried this, an agent (Kamogelo) gave me a scripted response about "broader risk and pricing reviews."

Furthermore, Kamogelo confirmed in writing that:

1. The "R9,000 cover" is just a maximum limit. If my phone is ******, they will just source the cheapest replacement and not pay out the limit in cash. 2. If I crack my screen (e.g., R2,500 repair), my R2,000 excess means I have to pay almost the whole thing myself anyway.

What is the point of having an app that lets you update your cover to save money, if your backend algorithm is just going to override the quote and charge you a 31% premium increase anyway? This is a classic bait-and-switch. You punish customers for being honest and updating their depreciating assets.

I have demanded that Naked honour the R135 quote their own app generated, or I will cancel my policy immediately.

If you are looking for transparent insurance especially for depreciating single items, be warned: Naked's "smart" algorithm is designed to squeeze more money out of you while providing less cover. I am currently exploring other insurances.