Insurtech Zego Partners with Telematics Firm ABAX to Lower Fleet Insurance Costs

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Insurtech Zego has partnered with global telematics firm ABAX in a move designed to drive down the cost of insurance for fleet owners.

While some fleets already use on-board telematics devices to improve efficiency, many still operate without them, said London-based Zego in a statement.

With the partnership, Zego said it can offer businesses a telematics solution and usage-based insurance policy wrapped up in one. This means that customers will only pay for the amount of time their vehicles are on the road or the distance they cover, which offers significant potential savings over a traditional insurance policy, added Zego.

Zego fleet customers pay a minimum base rate for the policy, with a flexible top-up premium that is calculated based on how much the fleet’s vehicles are used. No matter how many miles are covered, customers will never pay more than the agreed monthly cap, the company explained.

The telematics solution – which includes a simple-to-install device – will also let fleet managers track their vehicles and monitor driver behavior, giving them valuable insight into the performance of the fleet.

It also will help fleet owners to keep fully compliant tax records which prove that vehicles have only been used for business purposes, eliminating the threat of extra tax charges, added Zego.

“The partnership between ABAX and Zego represents a significant opportunity for both businesses, as well as the customers we serve. The relationship with ABAX will enable Zego to scale its flexible fleet insurance solutions at a faster pace, and continue to bring fairer pricing to our customers at a time where aligning costs with their revenue stream is more important than ever,” commented Don McCormack, chief of staff, Zego.

Zego was founded in 2016 and provides a range of flexible B2B insurance models for fleet businesses and new mobility services, such as car sharing and car leasing, including WeFlex, Splend and Drover. It currently insures a large portion of the UK’s delivery and ride-hailing workforce, partnering with companies including Uber and Deliveroo.

Peterborough, England-based ABAX is a European telematics company which allows businesses to utilize data to enable better management of their fleets of cars, trucks, and vans.

Source: Zego