The actual insurance consists of three parts:
Part 1 – the basic underlying subscription
In the legal policy document, this is defined as “basic” level cover. It’s very important to remember: this cover is only fully comprehensive while the vehicle is parked and unattended.
To ensure Cuvva policies remain within the legal definition of “short-term”, the subscription runs on a 28-day basis. This means that over the course of a year, there will be 13 cycles (i.e. you need to multiply the subscription price by 13 to determine your annual cost).
If your subscription is still set to automatically recur, a new “basic” cover policy will be issued for each 28-day period. We actually bill you and issue each policy a few days before it is due to begin – usually 5 days in advance. This gives you a short time window to resolve issues in case something goes wrong (e.g. your card has expired).
The premium on your subscription is fixed for 13 cycles. After that, it will be recalculated and fixed for another 13 cycles. If your details change, your premium will then need to be recalculated but will then remain fixed for the remaining cycles. If the tax rate changes, this will apply, but the premium won’t change.
Part 2 – the comprehensive driving cover
When you want to drive the car, you just ‘top-up’ your cover through the app. Driving cover is always fully comprehensive.
Each time you buy driving cover, a new insurance policy is issued for the time period you chose. It starts immediately and runs continuously until the policy comes to an end. It cannot, therefore, be paused. The minimum purchase is 1 hour, but you can also choose to extend for an additional hour or for the rest of the day, until midnight – perfect for a weekend! If, however, you only want to drive for 20 mins, you still need to buy an hour.
This cover must be purchased before you start driving – we cannot back-date any policy.
Part 3 – your Co-pilot
You may choose to have a Co-pilot (a little Bluetooth beacon) which plugs into the 12v socket of your car. This does not track your driving – it just pings your phone with a notification when you turn on your engine. This is to help ensure you don’t forget to buy driving cover.
It’s completely free and we can send it out to you right away. Just message us in-app or email email@example.com indicating you would like a co-pilot to be sent. If you’re having any problems, make sure to let us know.
Example scenario of how the subscription will work:
This is based on Ryan’s profile (our Head of Community).
Ryan’s base subscription is £19.60 per 28 days. So over a year, this will be £254.80.
Ryan’s quote to drive for 1 hour is £2.70. He buys a total of five one-hour policies per month, so his monthly spend is £13.50. Over the course of the year, this will cost him £162.00.
Therefore, the total amount Ryan pays for his car insurance for the year is £416.80 (£254.80 for the subscription + £162 for driving).
Of course, if Ryan drives less then he will pay less too, but if he drives more, he’ll end up paying more.
After each year, Ryan should be eligible to earn another year on his no-claims bonus (as long as he hasn’t claimed). Ryan can also cancel at any time without paying anything extra.
Please use this example as a guide to calculate your own estimated cost. It’s useful to do this to decide if Cuvva is right for you.