In October 2015, we launched our first ever product which offers hourly car insurance via an app. This enables you to get insured on any car in just a few seconds.
A few months ago, we launched our subscription product. This gives you an underlying policy on a car, which comprehensively insures you whilst the car is parked and unattended. When you drive, you purchase hourly “driving” policies which comprehensively insure you whilst on the move.
Each product has its own use case and solves different problems. So which one is right for you?
Primarily this is designed for people who are looking to get insured on someone else’s car for a short period of time. Before we launched this product, it was impossible to get insured on a car for less than 24 hours in the UK. If you just wanted to pop down the shop in your friend’s car, or share the journey with your friend for an hour or two, you would have to purchase 24 hours’ worth of car insurance. Clearly, that’s a pretty crap (and not to mention expensive) alternative so most people just didn’t have access to the kind of insurance they needed (or they would be well out of pocket.
By selling insurance in smaller increments of one hour and streamlining the purchasing behaviour in an app rather than on a website, it has enabled us to solve a problem that previous insurers had failed to solve 🙂
- driving a new car home from the garage before purchasing continuous insurance
- sharing the journey on a roadtrip
- getting insured when driving your partner’s car
If you end up using this product around 5-10 times a month on the same car, and expect to continue to do so, then the subscription product might be a more affordable solution.
We wanted to create a fairer way to price car insurance for infrequent drivers. Previously, it didn’t matter if you drove 1 hour a month or if you drove 100 hours a month, you still paid the same amount on annual insurance policy as these typically assume that you drive a minimum number of miles / year.
In theory, it would be great for infrequent drivers to be able to simply use the temporary product when they want to drive. However in the UK we have the Continuous Insurance Enforcement (CIE) law that states vehicles must always either be insured, or SORN. Only insuring your car for a couple hours a week then leaving it uninsured for the rest of the time, even in a garage, is against the law 🙁
You can use the temporary product on cars that don’t already have an insurance policy in place but you do need to make sure that when the insurance runs out, the car is either SORN or a new insurance policy starts (to keep the insurance continuous).
We have created the subscription product to solve the problem of not wanting to pay for more than you drive whilst still being continuously insured. We offer a cheap 28-day underlying policy which can cost between £15-40 that keeps the car continuously insured when parked in the garage on the street. When you want to drive, you pay a few pounds by the hour.
This ensures that you comply with the CIE law and allows you to save money on your insurance if you drive infrequently. An additional benefit is that you can build up a no-claims bonus after one year of claims free driving. You can purchase this product on either your own car or someone else’s, such as your partners.
I hope that clears up how you can use each product. If you have any further questions, let us know on our online community forum.