Could you save thousands with pay-as-you-go car insurance?
Many drivers will attest that it can be a long-winded process when sorting out the insurance policy for a car, so much so that many drivers end up paying over the odds for their insurance. A new method of paying is giving the process clarity while saving drivers money in the process. Cloud-based data collection has presented the opportunity for drivers to utilise a more personalised and straightforward method to insure their vehicles, using hyper-flexible insurance. Hyper-flexibility means that the pricing model is as versatile as the many ways of payment that are available currently in other markets and presents the option for drivers to pay only as they use their cars, opening the pay-as-you-go payment method to the customers.
Cuvva is a brand-new online car insurance service that only charges customers when they are using their cars, potentially saving their clients a significant amount of money each year. Daily and hourly insurance coverage have been around for a while, with large firms like Admiral offering this type of coverage, and other insurance companies, such as Dayinsure and Tempcover, also presenting the same type of pay-as-you-go insurance coverage. Short-term insurance on borrowed vehicles is covered by Cuvva’s first app, Cuvva for Sharers.
For car owners, the second product launched by Cuvva promises to save drivers up to 70% on their annual car insurance policies. This exciting figure adds significant gravitas to the company’s business model. The product, launched in April is called For Owners.
Pay-as-you-go products have been around for many years, and in some cases, such as with certain phone companies, the option is more expensive than a contractual obligation using direct debit. The insurance industry in the UK could be inspired by this new move, as phone- and internet-based apps help people to reduce the costs of using the road.