Chief exec says ’annual car insurance is not inclusive’, so Cuvva’s subscription aims to ’support drivers that aren’t served well by the current market’
Flexible insurance provider and insurtech Cuvva is challenging motor insurers with its new app-based monthly subscription for car insurance, designed to help futureproof the industry.
Cuvva’s subscription works in the same way as Netflix or Spotify, with rolling policies that last for one month.
This approach has similar benefits to annual policies - for example, comprehensive cover and a no-claims bonus after year one - however the subscription uses monthly payments without fees, such as deposits, interest or cancellation fees.
Freddy Macnamara, chief executive of Cuvva, said: “Annual car insurance is not inclusive. Too many people are falling prey to poverty premiums, paying more for the same level of cover or worse, [or] 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.”
Cuvva’s insurance app has supported nearly half a million UK drivers with temporary car insurance since 2016.
Solving historical insurance issues
According to App Annie, which provides market data and analytics, Cuvva was the most downloaded insurance app in the UK last year.
The insurtech aims to build products that incorporate insurance, technology and mobility.
According to Cuvva, millions of drivers battle with the upfront cost of an annual car insurance premium - the company argued that its rolling monthly cover could make insurance fairer and more inclusive for UK households.
It added that at least a third of drivers in the UK pay for cover in monthly instalments and, in exchange, absorb the high interest that traditional insurers charge, which can see APRs as high as 44%.
Insurtechs like Zego, Premfina and Lemonade are also 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,” Macnamara explained.
“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.”