One of the big bugbears for consumers is the interest that is added to monthly payments on many car insurance policies. PAYG insurance works well after the pandemic for those who drive fewer miles. But adding interest on top can seem like a penalty, a kind of punishment for being poor. There is a solution; monthly policies that start and stop on the 1st/31st, with the facility to switch cover off completely if another lockdown comes along.
Here’s the news from Cuvva;
Flexible insurance provider, Cuvva launches new monthly subscription car insurance via it’s app as a future-proof alternative to rigid annual car insurance. The insurance app has supported nearly half a million UK drivers with temporary car insurance since 2016. Building products at the intersection between insurance, technology and mobility, Cuvva hopes to close the next industry gap in the UK’s £14 billion motor insurance market.
According to Cuvva, millions of drivers battle with the upfront cost of an annual premium and says its rolling monthly cover will make insurance fair and inclusive for more UK households.
At least a third of drivers in the UK pay for cover in monthly instalments and in exchange, absorb the high interest traditional insurers charge, which can be APRs as high as 44%.
“Annual car insurance is not inclusive. Too many people are falling prey to poverty premiums, paying way more for the same level of cover or worse, are priced right out of insurance altogether because they can’t afford the premium upfront or don’t meet the credit checks associated with monthly payments.
“Cuvva has built a flexible, fair monthly solution that gives car owners freedom and supports drivers that aren’t served well by the current market,” says Freddy Macnamara, CEO at Cuvva.
Cuvva’s subs service works like Netflix or Spotify with rolling monthly policies that are set up and last one month. It has similar perks to annual cover in terms of comprehensive cover and a no-claims bonus after year one, but with monthly payments without the fees, including deposits, interest or cancellation fees.
According to App Annie, Cuvva was also UKs most downloaded insurance app last year.
Progressive insurtech’s like Cuvva, Zego and Lemonade are propelling insurance forward by simplifying financial products for the modern-day consumer.
“As a tech-first startup, we look at the industry from a different perspective. Combining fresh approaches and technology, Cuvva is able to solve historical problems and build products that better serve people’s actual needs.
“The motor insurance landscape is going to look very different in the next few years as changing demographics and lifestyle shifts prompt a rethink when it comes to mobility and how people insure their cars,” says Macnamara.