LV= launches monthly car insurance service

LV= General Insurance has launched a monthly car insurance subscription service in response to changing driving habits and the impact of Covid-19.

The new online-only cover from LV=, called Flow, puts drivers in complete control of their insurance, with a significantly shorter question set, no long-term commitment, no instalment charges and the freedom to change or cancel their policy whenever they like, with no additional costs.

A simplified buying process for Flow requires drivers to only upload a picture of their driving licence and answer 14 straightforward questions before the best possible price is offered.

Additionally, as part of simplifying the insurance journey, any existing no claims discount a customer holds plays no part in the amount they pay. The premium is based exclusively on a customer’s claims history and their specific circumstances.

According to LV=, the new model guarantees that the customer will always get the best price, regardless of whether they are a new or existing customer. After running a quote, customers are presented with a fixed price for the first month and a guaranteed maximum price for each of the following three months.

The standard Flow policy includes comprehensive, uninsured driver and misfuelling cover, and makes adding or removing drivers easy. For only £2 extra a month, policyholders are given the guaranteed use of a hire car if their car is being repaired, or has been stolen or written off.

Heather Smith, managing director of LV= General Insurance Direct, said: “The way people buy products and services online has changed enormously, and it’s important that the process of taking out car insurance evolves in the same way.”

“Flow gives drivers a simplified insurance experience, with a quick journey, competitive pricing and the flexibility to change their policy as and when they want to, at a click of a button.”

“There’s no admin fees, no instalment charges and you don’t need an existing no claims discount to get the best price. Whatever drivers want to do—change the mileage, change the driver or even change the car—Flow means it can be done quickly and easily.”

A monthly car insurance subscription is the first product that will sit under the Flow brand, with additional products currently being explored.

Mark Dugdale