Insurtech Zego has partnered with Europe’s largest car-subscription service Drover to insure its private hire vehicle subscriber base.
The partnership sees Zego’s flexible insurance policy integrated with Drover’s sign-up process so that private hire drivers are automatically insured when taking out a subscription on a vehicle. The arrangement means that drivers never have to think about insurance, while the possibility of Drover customers driving without cover is eliminated.
For Drover, the flexible pay-per-minute deal means vehicles are only insured for the exact time that they are on the road, keeping insurance costs lean. The process of adding and removing cars to the policy works with a seamless API integration, saving time and money on admin when compared to traditional insurance products. Zego is also able to generate quotes in real time, speeding up the sign-up process.
Drover, founded in the UK in 2015, offers consumers and private hire drivers an all-inclusive car subscription service. A subscription provides exclusive use of a car with insurance, maintenance, breakdown cover and more all included under one convenient monthly payment. The company, which advocates usership over ownership, has raised £7.5m in funding to date, while forming partnerships with manufacturers including BMW, Volkswagen and Toyota. Drover has also begun investing in electric vehicles and is a selected partner of Uber’s Clean Air Fund.
Zego was founded in 2016 to provide flexible insurance for the gig economy and has since expanded its B2B offering to cater to the fast-growing market of new mobility services. The company, which recently secured $42 million in a Series B fundraise, has already built adaptable insurance models for several innovative car-leasing businesses including Splend and WeFlex. Zego offers a range of policies from minute-by-minute insurance to annual cover, with pricing based on usage data from vehicles.
Sten Saar, CEO and co-founder of Zego said, “We’re seeing a major shift from ownership to usership in the world of transport and Drover has taken advantage of this movement to create a unique business model, which has huge potential to change the way that we use cars. Like us, Drover’s offering is built on flexibility. This is why we work so well together and why we’re hoping to collaborate further as Drover expands to new territories.”
Rob Prager, Head of Insurance & Risk at Drover said, “We’re delighted to have partnered with a like-minded tech startup in Zego. Their expertise in new mobility and digital first approach makes them the best possible insurtech partner as we continue to scale. In keeping with our ‘Cars Made Easy’ ethos, we can now give our subscribers more choice and flexibility than they’ve ever had before.”