The new product – a first for the UK market – requires the car owner to take out a monthly subscription of between £10 and £30 that then has to be topped up for each hour the vehicle is used.
Cuvva, which already offers by-the-hour insurance cover for individuals to drive vehicles belonging to friends and family, said car owners will have to pay from £1.20 each time they want to get behind the wheel.
Aimed at younger drivers who live in cities and cover less than 4,000 miles a year in their car
Cuvva says it could save some drivers up to 70% on a standard insurance policy
The cover is aimed at ‘young city dwellers who pay high insurance premiums for cars that are driven for fewer than 4,000 miles a year’, the Edinburgh-based insurer said.
According to Department for Transport and DVLA figures, there are approximately six million cars in the UK that are described as being driven ‘very infrequently’.
Cuvva said these low-mile drivers are forced to pay hefty premiums despite spending little time on the road, effectively subsiding higher-mileage motorists
The monthly subscription can be cancelled at any time at no cost, though drivers run the risk of a fine from the DVLA if the vehicle isn’t insured by another provider or declared off the road – or SORN – at the end of the 28-day subscription period.
For more information please go to www.cuvva.com