Zego, an insurance platform for the delivery and ride-hailing workforce, has formed a partnership with telematics company ABAX to lower the cost of insurance.
The InsurTech states that while some fleets use on-board telematics to improve the efficiency of their insurance, many do not. Through the partnership with ABAX, Zego customers will be able to access a telematics solution powered with a usage-based insurance.
This means, fleets will only need to pay for the amount of time their vehicles are on the road or the distance they cover.
Zego customers pay a minimum base rate for the policy, with a flexible top-up premium which is based on how much the fleet’s vehicles are used. Regardless of how many miles are driven, the customers will never pay more than the agreed monthly cap.
With the on-board telematics solution, fleet managers will also be able to track their vehicles and monitor driver behaviour, giving them valuable insight into the fleet performance. Furthermore, it will give them compliant tax records which prove the vehicles have only been used for business purposes.
ABAX CEO Morten Strand said, “The world of business and commerce has been changing rapidly for some time, although no-one could have foreseen the impact of COVID19. Which has both accelerated the change, and pushed businesses into some interesting, and challenging new directions.
“To survive, businesses must adapt, and embrace new and innovative ideas, such as Zego’s usage-based insurance, powered by ABAX.
Founded in 2016, Zego is an online insurance solution which covers UK delivery and ride-hailing workforce. The InsurTech offers a selection of B2B insurance products for fleet businesses and mobility services.
Earlier in the year, the InsurTech also formed a partnership with RSA Insurance to offer adaptable protection for van fleets.
Zego chief of staff Dom McCormack said, “The partnership between ABAX and Zego represents a significant opportunity for both businesses, as well as the customers we serve.
“The relationship with ABAX will enable Zego to scale its flexible fleet insurance solutions at a faster pace, and continue to bring fairer pricing to our customers at a time where aligning costs with their revenue stream is more important than ever.”
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