Zego usage-based vs flat-rate policies for fleets

Written by Jack Ramaswamy

Published on

We compare the two different types of Zego fleet insurance policies available.

The way the transport and delivery industry works is constantly changing and unfortunately insurance does not always keep up. At Zego, we pride ourselves on adapting to these changes to provide our customers with insurance that works for them. Whether it is for a taxi, courier or micro-mobility fleet, our insurance can scale up or down in order to sufficiently meet the demands of your business. In this post, we’ll compare our usage-based and flat-rate fleet insurance products to help you understand the benefits and suitability of each for your respective working schedules.

What is Zego’s usage-based policy?

Our usage-based Fleet insurance uses advanced technology and data collection from our partner ABAX, to develop accurate premiums based on the number of vehicles and drivers in your business and the time and distance they cover. To ensure your vehicles are always covered, you pay a minimum base rate for your policy which is then combined with a flexible premium which is calculated depending on vehicle usage. This is a particularly suitable option for fleet companies with lower mileage or when demand is less consistent.

What is Zego’s flat-rate policy?

Our flat rate policy is a fixed premium for the duration of cover. Unlike our usage-based policy which requires you to pay according to your fleet’s activity, the flat-rate premium would be calculated and purchased for a fixed period of cover. This would likely be a more cost effective option if your fleet company has high mileage or consistently high demand since a flexible premium of a usage-based policy with these circumstances is likely to result in you paying more. The flat-rate policy is also useful if you would prefer having greater control and predictability of monthly insurance costs.

What is ABAX?

The ABAX solution allows Zego to gather data on the usage of your vehicles in order to calculate the ‘flexible’ part of your premium for the usage-based policy or your general policy premium for the flat-rate policy. After installing the ABAX device in your vehicles, you can access insights into how long your vehicles are on the road as well as the distance they are covering. Alongside its vehicle tracking capabilities, the technology offers a range of benefits including, HMRC compliant mileage claims, insights into driving behaviour and effective fleet management, placing you in a better position to identify and manage any risks as well as maximising the operational efficiency of your business.

Managing your fleet with Zego

As a fleet company insured with Zego you will also be able to effectively manage your vehicles and claims processes as well as acquire your policy documents through Zego’s fleet portal. The portal provides insights into respective vehicle performances, a live view of claims and allows you to add and remove vehicles or drivers instantly from your policy with the click of a button. These features have been designed to improve the accessibility and management of your insurance, saving you time and money.

Getting started with Zego

For more information about Zego’s products, or if you’re interested in getting a quote for your fleet of mopeds or e-bikes, you can visit our Fleet Insurance Page.