For decades the UK car insurance market has been dominated by two products, TPF&T and Fully Comp, paid annually, with legal expenses and breakdown bolted on.
Now all that has been turned on its head as people realise they don’t need two cars or even three in their household, commuting is replaced with WFH and lower economic activity means far fewer miles.
LV= have also swept away policy admin charges with Flow, their new product, which is arguably one of the biggest pain points for many car insurance customers. Good skills and some might say this reform is long overdue across the insurance sector as automated systems & chatbots replace call centre operatives and keyboards.
So with driving habits changing and people adapting to the ‘new normal’ as a result of COVID-19, LV= General Insurance (LV= GI) has launched a monthly car insurance subscription – Flow – a new ‘fuss free’ product which offers drivers flexible car cover with tailored monthly pricing based on their personal circumstances, without incurring admin fees.
Flow offers a different type of insurance cover and talks to a millennial ‘on the go’ generation that potentially has perceptions of a complicated product that takes ages to sign up for, locks you in to a long contract and charges for making changes.
The new type of online only cover from LV= rel=”noopener noreferrer” GI – available at lv.com/flow – puts drivers in complete control, with a significantly shorter question set, no long-term commitment, no instalment charges and the freedom to change or cancel their policy whenever they like, with no additional costs.
Rather than make potential customers go through a long question set before they can receive a quote, Flow simply asks drivers to upload a picture of their driving licence, answer 14 straightforward questions and then calculates the best possible price. Additionally, as part of simplifying the insurance journey, any existing no claims discount a customer holds plays no part in the amount they pay – the premium is based exclusively on a customer’s claims history and their specific circumstances.
The new model guarantees that the customer will always get the best photo
liocprice, regardless of whether they are a new or existing customer. After running a quote, customers are presented with a fixed price for the first month and a guaranteed maximum price for each of the following three months.
The standard Flow policy includes comprehensive, uninsured driver and misfuelling cover and makes adding or removing drivers easy. For only £2 extra a month, policy holders are given the guaranteed use of a hire car if their car is being repaired, or has been stolen or written off.
Heather Smith, Managing Director of LV= GI Direct, said:
“The way people buy products and services online has changed enormously, and it’s important that the process of taking out car insurance evolves in the same way. Flow gives drivers a simplified insurance experience, with a quick journey, competitive pricing and the flexibility to change their policy as and when they want to, at a click of a button.
“There’s no admin fees, no instalment charges and you don’t need an existing no claims discount to get the best price. Whatever drivers want to do – change the mileage, change the driver or even change the car – Flow means it can be done quickly and easily.”
Monthly car insurance subscription is the first product that will sit under the Flow brand, with additional products currently being explored.