Insurtech Zego has announced its partnership with global telematics firm, ABAX, in a move that could drive down the cost of insurance for fleets.
The partnership between fleet insurance provider Zego and telematics firm ABAX is said to enhance its insurance offering, which bases premiums on useage with a minimum base rate and a maximum per-month cap for fleets.
Accurately measuring a vehicle’s usage is critical to Zego’s fleet insurance policy and although many fleets already use on-board telematics to improve operational efficiency, many still operate without the data intelligence that these devices provide, the company said. Therefore, Zego has partnered with ABAX to offer businesses a telematics solution and usage-based insurance policy in one.
The companies say this offers significant potential savings over a traditional insurance policy.
The telematics solution allows fleet managers to track their vehicles and monitor driver behaviour, giving them valuable insight into the performance of the entire fleet. It will also help them to keep fully compliant tax records which prove that vehicles have only been used for business purposes, eliminating the threat of extra tax charges.
Don McCormack, chief of staff, Zego said: “The relationship with ABAX will enable Zego to bring fairer pricing to customers at a time where aligning costs with their revenue stream is more important than ever.”
Morten Strand, CEO, ABAX said: “The world of business and commerce has been changing rapidly for some time, although no-one could have foreseen the impact of COVID19. Which has both accelerated the change, and pushed businesses into some interesting, and challenging new directions. To survive, businesses must adapt, and embrace new and innovative ideas, such as Zego’s usage-based insurance, powered by ABAX.”
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 has partnerships with Uber and Deliveroo. ABAX is a European telematics company.
