Car Insurance Future: The Smart Move is Leasing & Lifestyle Subscriptions

Partnerships are an established idea in the insurance sector. You cannot process claims, or price risk without partnerships of course, but it goes way beyond that. If you’re building brand values into your marketing, then the right partnerships can really boost loyalty and retention rates. The other thing partnerships can do is unlock upselling, or cross-selling opportunities.

That’s why your IE Editor thinks the LV= and CBVC ElectricX lease partnership is a clever idea.

Think about it, if the WEF Net Zero agenda works out, then people will give up on the idea of owning cars. That leaves car insurance brands with a problem; no asset to cover means no policyholders. But there is a Plan B of course, ridesharing and EV car leasing, which could be on-demand and per trip by 2050. So instead of having a 60K electric car on your driveway, it would be stored somewhere at a hire point, supermarket, shopping mall, secure public building/space etc.

You rock up on your Amazon hoverboard, swipe the chip in your hand to unlock the vehicle, pay the hire fee plus insurance, and away you go. To assess the PI risk any passengers on the journey are also scanned in via the car’s built-in dashboard facial recognition, which gauges age, weight, plus searches for past incidents/claims and processes world government ID checks, travel authorisation, carbon/vax status and more. If you don’t think that’s where we are heading then may I suggest you browse the WEF, Davos and Bilderberg websites.


Before we get to that Brave New World data trail future, the car insurance market has to take baby steps. One essential move is for insurance brands to offer complete EV leasing packages, customisable by the user. That’s why the LV= ElectricX is a smart idea in my view.

LV= is making it easy to take the EV plunge by providing everything in one place. From finding the right car through vehicle leasing experts CBVC Vehicle Management, to providing a home charging solution via leading provider Indra, and offering bespoke insurance.

Right now in the UK, it makes more sense to sell a package that includes home charging, because as every electric car reviewer on You Tube knows, the supply of available public charging points is limited, especially in the wealthy SE of England, where most EV take-up is happening. Sometimes public charging points don’t work, are not compatible with your car, plus you have the possibility of power companies or government rationing supply using variable pricing.

So a driveway charging point is a safer bet.

For insurers, knowing that your customer owns a house, with a driveway is abslute gold dust for LV= of course. You can then cross-sell home insurance, gadget, bicycle, hybrid home/buinsess cover, healthcare and more. Every car insurance brand needs to see this bigger picture which EV home charging unlocks. In essence every insurance brand is capable of joining the dots and selling a monthly subscription package deal that covers X30 journeys by EV, private health, home, gadgets, ID theft/cyber – whatever risks matter most to the consumer.

That’s the beauty of lifestyle data; it lets you see what matters to your customers and then you can tailor the cover to fit the variable demand. Travel cover and overseas medical treatment during the school holidays, lost or stolen parcels during the Christmas season, electric bicycle cover on those hybrid office working days. If you build choice into the product, people will make a choice. If the only options are take it or leave it…well, you know the rest.

The other benefit of selling lease packages is that insurance becomes another subscription like Netflix, Prime, SkySports or a smartphone contract. It’s in the background and just gets auto debited every month, in bite sized chunks. So it seems less painful than that sharp-intake-of-breath £650 quote for an annual policy.

If car insurers want a viable future, then they have to start weaning themselves off the big comparison sites and start selling lifestyle solutions via subscriptions, as ownership declines. Helping car owners exit that mindset and enter EV leasing is the smartest way to be on the policyholders side, from day one.



About alastair walker 10944 Articles
20 years experience as a journalist and magazine editor. I'm your contact for press releases, events, news and commercial opportunities at Insurance-Edge.Net

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