The California-based, Israeli mobility insurtech Voom, and Markel Insurance, have joined forces to launch a new UBI for motorcycles in a number of US states.
The insurance is currently available in Arizona, Illinois, Indiana and Ohio - but there ar eplans to roll out the service to a wider number of states.
According to reports, VOOM, which was founded in 2017, will act as a distributor for the new product, offering it to its large customer base of riders, as well as through partnership channels. Markel, which is headquartered in Virginia, will then manage the claims handling and underwriting.
UBI motorcycle insurance
VOOM focuses on data-driven, usage-based insurance products for several high-risk, episodic-use mobility verticals including drones, e-scooters, e-bikes, motorcycles, and light planes.
Currently, the insurtech VOOM says that a high number of motorcycle riders have to pay high, seasonal insurance costs when their motorcycles remain unused for weeks and even months of the year.
The company’s own research also reveals that the risk associated with low-mileage riding can be over 80% lower than that of high-mileage motorcycling. However, traditional insurance policies charge policy holders annually, regardless of use.
VOOM usage-based policies
VOOM states that per-mile coverage is the sensible answer for motorcyclists who travel short distances or ride occasionally.
The new product enables riders to pay a low monthly base rate deciphered by a number of factors, including the type of motorcycle they ride.
The UBI product does not require a telematics device for the vehicle that is operated via a mobile app that tracks bike health, road behaviour or mileage. Instead, the user simply uploads an image of their odometers on a monthly basis.
The cover includes online policy management and add-on coverage options such as liability, comprehensive, medical payments, collision, uninsured motorists and accessory coverage are available.
Speaking about the new product coverage and partnership, Tomer Kashi, CEO, and co-founder of VOOM said, “We are excited to be providing motorcyclists with flexibility through this per-mile motorcycle insurance product,” said. “Enabling cost-effective insurance options for riders and drivers is our top priority. We look forward to spurring further growth across mobility, particularly in otherwise overlooked parts of the industry.”
Jeff May, Executive Underwriting Officer at Markel explained, “We’ve been providing specialized motorcycle coverage for years, and due to the seasonality of the motorcycle riding season, this is a natural progression in the evolution of motorcycle insurance.”
He added, ”VOOM’s innovative technology and customer-centric approach, combined with Markel’s specialised motorcycle coverage, make this a product that we hope will bring motorcycle insurance to the next level for riders.”