This week we are very happy to finally launch the Cuvva subscription, a brand-new category of car insurance aimed at car owners who use their cars infrequently.
Currently low-mileage drivers have to pay hefty premiums through which they effectively subsidise high mileage drivers. The Cuvva subscription is a groundbreaking way of buying car insurance that will revolutionise the sector and could save drivers up to 70 per cent of the cost of an annual premium.
According to Department for Transport and DVLA figures, there are around six million cars in the UK that are driven very infrequently. Many belong to young city dwellers who pay high insurance premiums for cars that are driven for fewer than 4,000 miles a year.
Your subscription will allow you to buy insurance in a new way by paying a monthly subscription on average of between £15 and £35, depending on the car and where you live. You'll then pay a top-up premium from £1.70 an hour, via the app when you want to drive the car, putting you in control of the cost each month. As with conventional insurance, drivers who use the monthly subscription product will earn a no claims discount each year, which will be especially important in helping to radically cut the cost of insurance for people with shorter driving histories.
To start with, we will be rolling it out slowly with an initial group of early beta adopters which we will then gradually expand. Doing it this way will help us gather feedback from users and improve the product and get it ready for a full launch in spring 2017.
We are also very pleased to announce that we have recently completed a £1.5 million funding round, led by venture capital investors LocalGlobe. Tekton Ventures, Techstars Ventures, Seedcamp, Nick Hungerford (the founder of online investment management service Nutmeg) and Ian Hogarth (founder of SongKick) also participated in the round. This is a fantastic achievement for something that started off as an idea at a bar a little over two years ago and is a huge testament to all our customers. Thank you! We will be using this new round of funding to help improve the app (particularly android) and expand the number of people we can insure.
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