A recent study found that a fifth of UK adults don’t understand the difference between voluntary and compulsory excess cover. A further one in seven UK adults admit they have no understanding of how excesses on insurance policies work.
Speaking exclusively to Express.co.uk, he said: “The way we build our products is very customer led and one of the things we’re really proud about is that we offer customer support live chat.
“That’s available 24/7, 365 days of the year. It takes us a lot of effort to be able to do that, but we feel that if you want to ask us a question about your policy at 3am on Christmas morning, they can do it.
“I think that we should have to work around the customer, rather than have them work around us, so that’s why we go about making much more customer-centric products.
“The Insurers data sets from the days of old where they have data of decades and decades of driving behaviour, that is significantly less relevant.
“That’s why you need to use modern day technology to get driving data in real time.”
Cuvva are using drivers’ smartphones to track their driving, cutting out the middleman of needing to install any devices into their car.
This would remove the need for a formal black box, or speed limiter, and replace it with something every driver has on them at all times, making it more convenient for the driver.
Insurers typically base prices on how long the person has been driving, which has a huge impact on drivers who have recently passed their practical test.
Prices can also be based upon the time of the year, with more accidents occurring in the winter months, with more difficult driving conditions.
Smart pricing uses the computing power and sensors of the smartphone to track the level of driving, in the hopes of offering a much fairer insurance price.
Initially, the motorist will need to drive 125 miles, then the price will start adjusting based entirely on the driving behaviour of the vehicle owner.
Mr Gould said that they use smartphones instead of telematics devices to save on the extra hassle for the driver.
He continued: “One of the reasons that cancellation fees are free is because the fees for telematics products are extremely high.
“Sometimes they can be up to £125 because to cancel, they need to cover the cost of the black box.
“We don’t need to do that. We think that’s grossly unfair.
“We want to drag the insurance industry kicking and screaming into the modern world.”