Swiss Re reinsured Cuvva launches new product
Cuvva, a start-up reinsured by Swiss Re, has launched a new car insurance cover targeting low-mileage users.
The new product has been designed for people paying high insurance premiums for their cars used infrequently. It will be available for a monthly subscription ranging between £10 and £30, with top-up provisions.
Cuvva says that it could save drivers up to 70 percent of the cost of an annual premium.
"Saving £500 to £1,000 a year on your car insurance is life-changing," said Cuvva founder Freddy Macnamara.
"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."
"It was ridiculous that I couldn’t borrow a car for an hour, because of the difficulty of getting short-term cover. 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."
Ophelia Brown, general partner at venture capital investor LocalGlobe, added: “Pay-as-you-go insurance is a long overdue product in the UK, where increasingly the trend is for drivers to use their cars less and less. It’s crazy that people’s premiums haven’t and can’t change to reflect that. Cuvva understands that, just as consumers expect price transparency and flexibility with all other financial services, they should also get that with their insurance."
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