Subscription Insurance
Subscription Insurance is a new way of charging for insurance policies. AvivaPlus is going to provide car and home insurance policies. You pay for Aviva’s new service on a monthly basis. This works in much the same way as you might pay for Netflix or another streaming service. The price you pay will still depend on details about your personal circumstances, however.
AvivaPlus has three main selling points. Firstly, it promises to have no interest payable on monthly subscriptions. It also has no cancellation fee. This means you can cancel at any time without being charged for it. Finally, to counter traditional insurance’s problem with loyalty, Subscription Insurance from Aviva promises to cost the same or less than a new subscriber when you renew your subscription each year.
Mainstream Insurance
Despite the listed advantages, there are still reasons why subscription insurance is not yet ready to become insurance’s mainstream model. There is no guarantee that an AvivaPlus policy would be cheaper than a regular insurance policy. For some people, therefore, there is no real advantage to a subscription insurance policy.
In the coming years, it is likely that traditional means of paying for insurance will stay the default. Paying for your insurance via a subscription may become the future – however, until it becomes the cheapest option, it is unlikely to be everyone’s first choice.
GAP Insurance protects your car beyond traditional insurance does. Get a quote today to protect the value of your car after a write off.