Short term car insurance, from small beginnings, is now a major product in the motor insurance sector, having grown around 70% in the last four years. Instead of being limited to buying policies for a whole year motorists can now be covered for anything between a few hours to a month or more.
Tempcover started life in 2006 by offering short term insurance for between one and 14 days. By 2014, partnerships with major insurance companies and brokers helped them grow continuously intil they sold their first million policies by 2013, then doubling this (after ten years of business) to two million. By 2017 they were claimed to be responsible for around 60% of the short term car and van insurance market, and with their majority shareholder looking to retire, private equity firm Connection Capital invested £7.5 million to back a management buyout. In 2017 the company won the Queen’s Award for Enterprise (Innovation Category).
Dayinsure.com Limited first appeared in 2003 with the issuing of just two £1 shares. Despite this humble beginning the company, with insurance giant Aviva underwriting their policies, has grown to become one of the major players in the short term car insurance market. The ex-CEO of Aviva, Mark Wilson, who has started his own investment business, is so confident of the company's future that he has just bought it, for a so-far undisclosed sum.
Cuvva first started life as a insurance brokers in 2014, promoting a pay-as-you go insurance system, but by 2019 they had raised substantial funds with backing from a number of sources including venture capitalists and top names in the insurance industry. They have been selling short term policies for cars, vans and learner drivers, not only via their mobile app but also by telephone too. They are said to have over a hundred staff and half a million customers already, and their long term aim is said to be to sell all insurance products via their app.
The Admiral insurance company realised a while ago that car insurance was changing. Millennials were preferring ride sharing apps to car ownership and the driverless car was threatening to completely disrupt the insurance market. A technology company called Theodo was brought in to devise a completely new approach to insuring cars, particularly for people who didn't own a car, and by 2016 a car sharing insurance policy was launched. This was followed by learner driver insurance, a car rental business then short term car insurance, for between an hour and 30 days, aimed at those who wanted to borrow a car for a short time.
Marmalade have specialised in young driver insurance for over a decade and their short term offering is specifically aimed at learner drivers who want to practice, with proper supervision, in a car belonging to a friend or relative. Unlike other short term companies that will offer policies from just a day or even a few hours, Marmalade learner insurance lasts for a minimum of 30 days, because they believe that regular practice over a few weeks is the best way to gain experience and pass a driving test.
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