RAC teams up with Wrisk for mileage-based car insurance trial
The RAC has become a strategic investor in insurtech Wrisk as it works with the London-based firm on trials of a mileage-based car insurance product.
The insurtech company is a specialist in flexible app-based insurance and has recently partnered with several reputable brands including serving as the sole car insurance provider for BMW’s financial services arm in the UK and collaborating with Allianz Automotive.
Its work with the RAC will enable trials of a mileage-based car insurance product which enables customers to only pay for the miles driven each month, plus a flat fee for when their cars are parked.
The plan offers an extensive choice of add-ons, from personal injury cover to accessory cover, as well as real-time pricing that reflects changes immediately, without incurring any fees. In addition, the subscription-based model gives customers the control to cancel at any time. The product is underwritten by the Munich Re group of companies.
RAC Insurance and Financial Services managing director Mark Godfrey said: “We are convinced there is a significant section of the motor insurance market that only drives lower than average miles every year who are not well served by the way standard car insurance is priced and who could benefit from a product that is set up specifically to cater for their needs that can be taken out quickly and is simple to cancel should it no longer be required.”
Commenting on the firms’ work, Wrisk CEO Nimeshh Patel said: “Together, with our mutual belief in challenging the standard car insurance model, we have created a solution that meets the needs of today’s motorists and moves us closer to making usage-based insurance the norm.
“Through the WriskScore we are helping to recast trust and transparency in insurance, allowing customers to understand the factors that affect their quote, to make buying an insurance policy a positive life choice rather than a chore.”