Cuvva raised these funds primarily from Breega, Digital Horizon, and RTP Global along with existing investors Tekton, Seedcamp, Techstars Ventures, and LocalGlobe.
The concept started back in 2016 by Founder Freddy Macnamara after he was frustrated when he wasn't able to allow others to intermittently drive his car due to his inability to get insurance coverage.
Cuvva was then founded to be a pay-as-you-go insurance company to help fill that void.
The concept was to make it easier to insure a vehicle only for the time it was being driven and making it cheaper for drivers who didn't drive often. This would all be done through a mobile app which would also make it easy to add on new drivers.
The company also offers auto insurance by the hour, but it has also expanded to offer day by day coverage and insurance for drivers just starting to learn. Cuvva has also pushed into traditional insurance coverage as an effort to help court younger drivers.
With all these additions, the company says it will be using the new funds to help start a new monthly product early next year. Cuvva believes by moving toward a monthly model consumers could save money on their annual insurance bills. The company hopes to remove brokers and comparison sites from the process and charge insurers around £70 for each policy.
“Unlike legacy insurers, Cuvva will not charge a fee to spread payments over the year and it will not penalise loyal customers with dual pricing,” the company said in a statement.
Cuvva says it will also provide savings to its consumers and won't charge admin fees.
Founder Macnamara stated: “I started Cuvva when I couldn’t find flexible insurance to help me share my car. Four years on from launch we are still discovering how big the problem we are solving really is. We’re now selling 3% of all UK motor insurance policies but we’ve got so much further to go. Cuvva is going to be the place where you buy all your insurance, all through our mobile app.”
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