Commercial motor insurance provider Zego has introduced a new flat-rate insurance policy to complement its existing usage-based policy.

The new flat-rate insurance policy is the latest development from insurtech firm Zego, which initially offered pay-as-you-go cover for the gig economy and expanded into the fleet sector

It’s targeted at fleet, courier and private hire companies which are in constant demand, drive high mileage or simply want to pay a fixed premium per month – and also enables them to access the benefits of Zego’s telematics and intuitive dashboards.

Fleets using the flat-rate policy will be installed with Zego’s telematics devices from partner Abax, capturing fleet driving behaviour. This in turn allows fleet businesses to identify and better manage any risks and access reduced premiums as a result; better-performing fleets will be rewarded with up to 30% off their policy at renewal.

Fleets adopting the new policy will also be able to effectively manage their vehicles and claims processes through Zego’s fleet portal. This brings insights into individual vehicle performance, a live 24/7 view of claims and allows businesses to add and remove vehicles and drivers instantly from the policy.

It’s the latest development from insurtech firm Zego, which was founded in 2016 and initially focused on offering pay-as-you-go cover for delivery drivers in the gig economy but later expanded into mobility and the fleet sector; it also has its own UK licence to underwrite insurance.

The company has provided more than 17 million insurance policies and recently became the UK’s first insurtech unicorn after raising $150m (£111m) in a Series C fundraise.

Ines Feracci, commercial director at Zego, said: “Zego is committed to offering fleets the most cost-effective, flexible and easy-to-manage insurance policies. Where our flagship ‘by-the-mile’ flexible products suit some fleets, others prefer to pay a set monthly premium – whilst still being able to access the benefits Zego’s telematics and intuitive dashboards bring.

“We are thrilled to be able to offer a choice of products to fleets, all of which reward better driving performance.”