At Cuvva we aim to be as transparent as possible. Despite this, we find that some customers are left confused when we are unable to insure them.
This blog post seeks to demystify the restrictions set by our underwriters.
Cuvva is an insurance broker, meaning we have an underwriter who establishes who we can and cannot insure, and sets the pricing for each policy. Our job is to provide a quick and easy experience, that adapts to our customer's needs.
The insurance industry is data driven, and given that we are providing a new product, we had very little data to go off. In these situations, the underwriter starts off by insuring a small group of people. Once the underwriter accumulates enough data, they are then much more willing to relax the restrictions. Since we first launched in the App Store (October 2015), the range of cases we can cover has increased dramatically - an increase in flexibility that is evident by our recent addition of learner and van insurance. 😃
Ultimately, as time progresses, so will the variety of cases that we can cover.
The restrictions differ between the short-term and subscription products because each is backed by a different underwriting insurer. There are some blanket restrictions, such as vehicle type or valuation, which are clear and definitive. And there are some more complex rules, such as age range, insurance group, or the period of time an individual has held their licence for - these often result in confusion when a customer is denied a quote.
An example of these restrictions coming into play for the short-term product: Ryan, our Head of Community (aged 25) has held his licence for 7 years, so can be insured on a Audi A5. Whereas, Loren, our Head of Growth (aged 31), can’t get insured on the same vehicle because he only passed his test 12 months ago. 💡
Current age ranges
If the customer has a provisional licence :
They should be no younger than 17 years old.
They should be no older than 45 years old.
Vans are not eligible.
If the customer has a full licence :
They should be no younger than 19 years old (21 for vans).
They should be no older than 65 years old.
No provisional licences are accepted.
If the customer has a full licence :
They should be no younger than 21 years old.
They should be no older than 75 years old.
Regardless of age, we can insure the vehicles within these ranges:
Short-term Private cars up to £40,000
Commercial vehicles up to £20,000
Subscription Private cars between £2,500-£70,000
It is often assumed that the price of the vehicle is a large determining factor. There are many misconceptions around vehicle value, and many people assume the cheaper the vehicle, the lower the cost of insurance. However, those with lower value cars tend to drive less carefully than someone who has a brand new £20,000 car (although this isn’t always the case).
Price of a vehicle can be subjective and hard to determine, so underwriters often choose to favour the vehicle insurance group. Insurance group restrictions are determined by how long a customer has had held their licence for. Usually, we able to insure drivers over 21 years old from the moment they pass their test. However, for higher insurance group vehicles, customers may have to wait until they have held their licence for anything up to 7 years.
Current insurance group ranges
Short-term: all cars are allowed (other than a few exceptions - mostly group 50), and any commercial vehicles allowed by the underwriter. Subscription: all cars are allowed up to insurance group 40.
Aside from the above points, there are numerous other variables taken into account, such as previous incidents and points on your licence. Unfortunately, due to the complexity, this blog post cannot cover every possible factor that influences an individual’s eligibility. But if you do run into an issue, you can always chat with us and we’ll be happy to explain.😊
Hopefully this has helped clarify why we can and can’t insure certain users on some vehicles. As time progresses we look forward to being able to insure a wider range of people, on a wider variety of vehicles.
If you have anymore questions about our restrictions, or anything in general, please head over to the Community forum or contact our customer support team, via the in-app chat.
The Cuvva Team 🚘