Cuvva raises £15M Series A to launch flexible monthly car insurance
Cuvva, the app-based insurance supplier that started life providing pay-as-you-go driving cowl however has since expanded to additionally promote journey insurance, has raised £15 million in Series A funding.
Backing comes from RTP Global, Breega, and Digital Horizon, becoming a member of current buyers LocalGlobe, Techstars Ventures, Tekton and Seedcamp. A variety of angels additionally joined the spherical, together with Dominic Burke, the CEO of Jardine Lloyd Thompson, and Faisal Galaria, the previous chief technique and investments officer of GoCompare.
Launched in 2016 when founder Freddy Macnamara (pictured) change into annoyed he couldn’t let others drive his car intermittently due to lack of insurance cowl, Cuvva was an early pioneer of pay-as-you-go car insurance.
The concept, which was simpler defined than accomplished, was to make it attainable to insure a car solely when it was being pushed, and subsequently be cheaper for low mileage drivers, and by way of an app and entry to the DVLA database, make it simpler to on-board new drivers for pay-as-you-drive cowl.
The insurtech nonetheless gives hourly car insurance however its product line has since been expanded to every day covery, in addition to a product particularly aimed toward learner drivers. In addition, Cuvva entered the journey insurance area, little doubt recognizing overlap with its presumably youthful, millennial demographic.
To that finish, Cuvva says it can use the brand new capital to launch a brand new pay-monthly motor product in early 2020 that it says might lower common annual payments for car homeowners “significantly”. It will do that by reducing out numerous center individuals, together with brokers and comparability web sites, which it says cost insurers about £70 on every coverage bought.
“Unlike legacy insurers, Cuvva will not charge a fee to spread payments over the year and it will not penalise loyal customers with dual pricing,” says the startup. Cuvva additionally says it can supply the identical financial savings, whether or not you might be signing up as a brand new buyer or a returning buyer, and received’t cost admin charges to alter private particulars registered along with your coverage.
Cue canned assertion from Macnamara: “”I began Cuvva after I couldn’t discover flexible insurance to assist me share my car. Four years on from launch we’re nonetheless discovering how massive the issue we’re fixing actually is. We’re now promoting 3% of all UK motor insurance insurance policies however we’ve acquired a lot additional to go. Cuvva goes to be the place the place you purchase all of your insurance, all by our cellular app”.