Price transparency at Cuvva

Transparency is a cornerstone of how we do things at Cuvva - and that extends to the prices our customers pay.
By Team member, 15/11/2021
2 minutes read

With the incoming ban of dual pricing coming early in 2022, we think it's necessary that insurers around the country show more transparency with their pricing.

We're leading the way, which is why we give as much pricing transparency as we can when you purchase policies with us.

For example, you can see the 'What affects my price' breakdown when getting a quote in our app, and your policy documents contain the full breakdown of premium, admin fee, and tax.

Transparency is a key value for everyone working at Cuvva - we even have an open salary model - so it's only right that we extend that to our customers.

What's included in the price when I purchase with Cuvva?

Buying insurance can be confusing so we try to keep things simple.

The amount you pay for your policy includes a combination of the following:

  • Premium - the amount paid to the underwriters to cover your vehicle
  • Tax - calculated as a percentage of total premium
  • Admin fee - the fee paid to us for arranging your insurance

What is 'premium'?

Premium is the amount paid to the underwriter for your insurance policy. The underwriter is the company who actually takes on your insurance policy, at Cuvva we're simply the intermediary.

They mainly use the premium to pay for claims, but there are other costs they face - for example, the price of fighting against fraud.

What tax do I pay?

None of our policies include VAT. The tax we charge is IPT (insurance premium tax), and is charged at the standard rate of 12%.

What's the admin fee?

The admin fee is the fee paid to us, in this case the insurance intermediary, for arranging your insurance.

We typically receive between 10% and 30% of the total amount you pay. But it can vary, depending on our agreement with the underwriter of your policy.

We use this fee to build the app, run the company, and provide excellent customer service.

We also use parts of this fee to check your accidents and claims match those on the Claims & Underwriting Exchange (CUE), add your policy details to the Motor Insurance Database, and pay our payments provider for handling the payment.

We charge an admin fee as we have to make money from the policies we sell. We keep this fee as low as possible, to make sure our policies are still affordable.

We never sell your data to other companies, or get kickbacks from claims management companies or injury solicitors.

How it all works

Let's make things even simpler! Here's how things actually work, and where each penny goes when you buy a policy.

John Doe purchases a policy in our app. The policy has a premium of £5, IPT of 60p, and an admin fee of £1 (assuming an averaged 20% admin fee). This makes for a total cost of £6.60. Simple!

Team member