The online only product is the first under LV=’s new ‘Flow’ brand

Insurer LV= has launched a monthly car insurance subscription product under its new brand Flow in response to changing customer behaviour resulting from the Covid-19 pandemic.

The online only product, targeted at millennial drivers, aims to simplify the application process – to obtain a quote, for example, potential policyholders just need to upload a picture of their drivers licence and answer a stripped back question set, which uses 14 questions only. Customers are then presented with a fixed price for the first month and a guaranteed maximum price for the following three months.

The new subscription product also strives to increase flexibility for customers by eliminating instalment charges as well as any admin fees associated with making policy changes. Policyholders are able to change or cancel their policies whenever they wish and there is no long-term contract.

LV= said Flow’s car insurance product is not influenced by customers’ no claims discounts – instead, the premium is based exclusively on their claims history and personal circumstances.

The standard policy includes comprehensive, uninsured driver and misfuelling cover. For an extra £2 a month, policyholders are able to obtain a hire car if their vehicle is being repaired or has been stolen or written off.

Simplifying insurance

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.”

The car insurance subscription is the first product under the Flow brand; LV= added that it is exploring additional products to expand the offering.