InsurTech startup Zego has partnered with car-subscription service Drover to insure its private hire vehicle subscriber base.

The partnership sees Zego’s flexible insurance policy integrated with Drover’s sign-up process so that private hire drivers are automatically insured when taking out a subscription on a vehicle.

For Drover, the pay-per-minute deal means vehicles are only insured for the exact time that they are on the road, keeping insurance costs lean. Zego is also able to generate quotes in real time, speeding up the sign-up process.

Drover, founded in the UK in 2015, offers consumers and private hire drivers a subscription service for a monthly fee, providing access to a range of cars, while handling all of the admin that comes with owning a vehicle. The company has raised £7.5 million in funding to date, while forming partnerships with manufacturers including BMW, Volkswagen and Toyota.

Zego meanwhile, was founded in 2016 to provide flexible insurance for the gig economy and has since expanded its offering to cater to the fast-growing market of new mobility services. The company, which recently secured $42 million in a Series B fundraise, has already built adaptable insurance models for several car-leasing businesses, including Splend and WeFlex. It offers a range of policies from minute-by-minute insurance to annual cover, with pricing based on usage data from vehicles.

Sten Saar, chief executive and co-founder of Zego, said: “We’re seeing a major shift from ownership to usership in the world of transport and Drover has taken advantage of this movement to create a unique business model, which has huge potential to change the way that we use cars.”

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