On-Off Insurance Nightmare, To Become A Waking Reality.

A car insurer has taken inspiration from the likes of Uber and Deliveroo and created the UK's first pay-as-you-go policy.

Edinburgh-based service Cuvva aims to offer drivers an easy and flexible policy, by charging them only when they use their car, plus a monthly subscription fee, to protect their vehicle while it is parked. 

The monthly fee varies from £10 to £30 and can be cancelled at any time, while the on-the-road insurance cost starts at £1.20 per hour.

Previously, the firm has offered by-the-hour cover for people who want to drive friend/family members' vehicles. However, this latest scheme is aimed at younger, inner city drivers who cover less than 4,000 miles a year. This is the demographic which faces the highest insurance premiums – an estimated £2,122 per year, according to confused.com.

Meanwhile, the average premium was £767 in 2016.

Cuvva says its subscription-based policy could save Britain's six million infrequent drivers up to 70% on an annual premium, which equates to between £500 and £1,500 a year.

Each subscription covers only one driver on one car, meaning that if you wish to be insured on multiple vehicles, you would need to take out more than one subscription. Similarly, if two people share a car, they would each need their own subscription.
At the end of a 12-month period, drivers are entitled to a year's no claims bonus, as with a convetional policy.

Cuvva founder Freddy Macnamara, told the Sun: "It was ridiculous that I couldn't borrow a car for an hour, because of the difficulty of getting short-term cover," he said.

"I could order an Uber or a Deliveroo to my house, but I couldn't buy insurance for a short period quickly.

"We realised that we could use the same mechanism to save infrequent drivers a huge amount of money.

"Technology has changed so many industries and given consumers cheaper, more convenient alternatives. Yet car insurance continues to be opaque and inflexible, costing some people a lot more than it should.

"Whether it is borrowing a car from a friend for a short period of time, or owning a car that you don't drive much, many people get an unfair deal when it comes to car insurance."