Cuvva’s new subscription model allows users to buy monthly car insurance at a cost of £10 to £30, depending on the vehicle and location. Cuvva allows for premium “top up” hourly insurance via its app starting at £1.20 an hour. This lets car owners buy insurance coverage for times when the car is in use.
“It was ridiculous that I couldn’t borrow a car for an hour, because of the difficulty of getting short-term cover,” said founder Freddy Macnamara in a statement. “I could order an Uber or a Deliveroo to my house, but I couldn’t buy insurance for a short period quickly. We realized that we could use the same mechanism to save infrequent drivers a huge amount of money. Saving £500 to £1,000 a year on your car insurance is life-changing.”
Cuvva, which was launched in 2014 and is headquartered in London, is also one of many web-based providers of temporary motor insurance, such as Tempcover, DayInsure, and Sky Insurance.
According to UK government statistics, there around 6 million cars there that are driven infrequently. This is part of a noted and growing trend that people are driving less frequently, so Cuvva’s business model is right for the infrequent driver, especially those who live in cities and drive less than 4,000 miles a year.
Cuvva does have its limitations, however. The startup’s app is available for use only within the UK and for those between the ages of 21 and 65 with a local UK license.
The beta launch coincides with the closing yesterday of a £1.5 million seed funding funding round, led by venture capital investors LocalGlobe. Tekton Ventures, Techstars Ventures, Seedcamp, the founder of online investment management service Nutmeg and and the founder of SongKick also participated in the round.Like This Post