Comprehensive car insurance customers pay KOBA an upfront fee of approximately $300 to cover damage to their vehicle while it’s parked, and then insurance is calculated on a per-kilometre-travelled basis. 

KOBA notes usage is measured through a small matchbox-sized device called a KOBA Rider that attaches to a car’s OBD port.

An OBD port is often located in the driver footwell beneath the steering wheel and is usually used to diagnose electrical or engine faults.

The attachment then communicates with the KOBA smartphone app to automatically calculate driving distances and charges a per-kilometre rate for each trip.

The KOBA app, pictured below, works similar to Uber in that users can see the breakdown of their trips.


Source: KOBA

KOBA Founder Andrew Wong said people are using their cars less since the pandemic, with some still working from home a couple of days a week while others are taking advantage of borders reopening to fly overseas.

"Their car is sitting there, unused and costing money," Mr Wong said. 

"If you’re driving less and for shorter distances why should you be paying the same for car insurance as everybody else?

“In the current climate, it’s a great way for people to keep track of their insurance expenses because they can see the cost as it happens."

KOBA insurance costs - does it make sense?

KOBA notes customers can pay from as little as 3 cents ($0.03) per kilometre, with total cost calculated at the end of each month. 

Further, if a motorist travels more than 250 km per day, KOBA says it will bear the cost of the remaining kilometres travelled.

The same is applied if one drives more than 1,750 km per month, with KOBA fronting the bill for the rest of the month's kilometres. 

ABS data suggests passenger vehicles drive an average of 11,100km per year, or 925km per month.

Using this average and assuming no daily trips exceed 250km, the base policy would cost $633 per year ($333 distance insurance plus $300 parked insurance).

No matter the insurer, policy costs are highly dependent on age of driver, experience, faults, location and other factors.

KOBA insurance details

KOBA is underwritten by eric insurance, with some of its coverage including:

  • Accidental loss (including theft)
  • Accidental damage that occurs during the policy period as a result of accidental damage, collision, fire or explosions, flood or water, storm or hail, theft or attempted theft, vandalism or malicious act and earthquakes.
  • New car replacement - if your car is written off in the first 24 months of its registration and has fewer than 40,000km on the odometer, KOBA replace it with a new one.
  • Emergency travel and accommodation for up to $500 for your accommodation and travel if you are more than 200 kilometres from home and your car cannot be driven.
  • Baby seats - damage to baby seats as a result of a claim up to $500 per item and a maximum of $1,000 in total.
  • Hire car following a theft for eligible claims, up to a maximum of 14 days, by as much as $70 per day.

For full details on the ins and outs of KOBA's policy and to make a decision as to whether this product is right for you, be sure to check out KOBA's product disclosure statement


In the market for a new car? The table below features car loans with some of the lowest interest rates on the market.

Update resultsUpdate
LenderCar LoanInterest Rate Comparison Rate* Monthly Repayment Interest Type Vehicle Type Maximum Vehicle Age Ongoing Fee Upfront Fee Total Repayment Early Repayment Instant Approval Online Application TagsFeaturesLinkCompare
6.24% p.a.
7.36% p.a.
1 year
  • Available for purchasing new and demo vehicles
  • $5,000 to $150,000 loan amount
  • Redraw facility available up to $5000/day
  • Required: Good credit history, stable employment history. Aus citizenship or PR.
6.57% p.a.
7.19% p.a.
No Max
Loan amounts from $2k to $75k
  • Available for any new motorised vehicle
  • No ongoing or early exit fees
  • 1-7 years loan terms. Pay monthly, fortnightly, or weekly
  • Get quick decision. Funds in 24 hrs if approved
6.99% p.a.
8.11% p.a.
1 year
Approval within 24 hoursEarly payout available
  • Required: Good credit history, stable employment history. Aus citizenship or PR.
Important Information and Comparison Rate Warning

All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here.

The comparison rates in this table are based on a loan of $30,000 and a term of 5 years unless indicated otherwise. The comparison rates for car loans and secured personal loans for the relevant amounts and terms are for secured loans unless indicated otherwise. The comparison rates for unsecured personal loans are applicable for unsecured loans only. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. Comparison rates are not calculated for revolving credit products.

Monthly repayment figures are estimates only, exclude fees and are based on the advertised rate for the term and for the loan amount entered. Actual repayments will depend on your individual circumstances and interest rate changes. Rates correct as of . View disclaimer.

Image by Sarah Brown via Unsplash

Ready, Set, Buy!

Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!

With bonus Q&A sheet and Crossword!

By subscribing you agree to our privacy policy