Click and cruise: the future of car insurance

5 minutes

As LV= simplifies the car insurance market with Flow, our new digital subscription cover, we take a look at how car insurance is evolving for the future.  

 
  • What’s telematics insurance?
  • Why personalisation matters
  • Is pay monthly the future of insurance? 
 

As LV= simplifies the car insurance market with Flow, our new digital subscription cover, we take a look at how car insurance is evolving for the future.  

Let’s face it: for many of us, car insurance is a pesky essential, something required by law. Beyond buying and renewing our insurance, we probably don’t think much about it (aside from wishing it was simpler, and easier to understand). 

Thankfully, car insurance is changing – for the better. 

Why? Because the way we use cars is changing too. 

Back in the day, just owning a car was a luxury, something limited to the wealthiest members of society. More recently, cars became an essential, with 83 per cent of families owning at least two cars.

But even though there are more cars on the road than ever before, it’s important to recognise the way we insure  them is  changing too.  

We want everything at the tap of a button, including ways to get from A to B. Young people – especially those in busy, urban areas – are spoilt for choice. Whether it’s ordering an Uber, jumping on a bus, hiring a car just for a weekend or carpooling with friends, getting around is a cinch, so owning a car seems less important. 

So how did car insurance get started?

Car insurance, in its many different forms, has pretty much been around since cars have. Back in the day, a car was seen as the ultimate show of wealth and prestige, with only the privileged few owning one.

Making car insurance a legal requirement didn’t happen until 1930 when The Road Traffic and Third Party (Rights Against Insurers) Acts were introduced. Fast forward to 2020 and we have the choice of electric car cover, classic car cover and even multi car cover to name just a few. Car insurance has adapted over time to keep up with consumers’ individual needs, resulting in providers like Flow  offering personalised, flexible, monthly subscription insurance.

 
Flow gives you quick and easy cover. It’s simple: get a quick online quote that’s tailored to you, then hit the road. We customise your quote based on your current circumstances so Flow isn’t a telematics policy and you don’t need a black box.

What’s telematics insurance?

Telematics insurance policies involve having a ‘black box’ fitted to your car. The box tracks your driving and shares it with your insurer. 

They often track:

  • Acceleration
  • Speed
  • Braking force required to slow down
  • Mileage
  • What time of day you drive
  • Where you drive
  • G-forces through corners

Telematics insurers uses this data to calculate your premiums, which can change day-to-day. Often, you’ll get a score that indicates how your driving is impacting your premium. 

There are some positives and negatives to weigh up if you’re considering telematics insurance. 

Positives and negatives if you're considering telematics insurance

What about my data?

Not cool with being tracked every time you drive? Telematics cover means a lot of data about you is sent to your insurer. Although all policies require a certain amount of information, constant tracking can feel a bit Big Brother to some.

Because consumers are so informed about the value of their data, insurers are getting creative, looking at new ways to offer a personalised service without gathering more data than necessary. The future of insurance looks bright.

So, what does the future hold for insurance?

For a generation accustomed to instant gratification, it was only a matter of time before everything we interact with became personalised. From online shopping and streaming music or TV shows to news stories and restaurant recommendations, now, even car insurance is catching up.

To keep up with changing expectations, insurers are having to adapt to an ever-changing, digital market. We can now insure and go using our phones, tailor our communication preferences and find answers to most questions online. Buying a car insurance policy is becoming more streamlined and tailored to fit the needs of consumers who don’t want the usual hassle of arranging a car insurance policy.

Plus, because owning a car matters less to the new generation of drivers, insurers need to cater to a market where people want their car insurance to be fast, flexible and instant.

One thing’s for sure: car insurance is changing. 

Adapting to the new market 

The attitudes of UK motorists are changing all the time. In a world where data privacy issues are in the spotlight, drivers are more conscious and cautious about how companies hold and use their data, and may be reluctant to have their premiums calculated as they have been for many years.

Still, while attitudes are changing, car insurance remains an essential and legal requirement. So what can we do to make it work better?

Meet Flow, subscription car insurance, no black box required 

At LV=, we’re simplifying insurance with Flow, our new pay-monthly, subscription car insurance cover. 

Flow gives you quick and easy cover. It’s simple: get a quick online quote that’s tailored to you, then hit the road. We customise your quote based on your current circumstances so Flow isn’t a telematics policy and you don’t need a black box.

You can log in to your account 24/7 to manage your policy. And,with rolling cover, no admin or cancellation fees and no interest charges, you can relax, and go with the flow. 

Flow gives you complete control and transparent pricing. You’ll get a maximum price every three months that's based on your personal circumstances, so you’ll always know how much you’re paying. Plus, we don’t take No Claim Discount (NCD) into account  – we’ll only ask what’s relevant to give you the best price. 

All content is approved by our in-house advisory board of experts.

LV= is not responsible for content on third party websites. 

Get a quote for Flow today

Get a monthly car quote