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The new monthly insurance service aims to offer tailored costs every three months instead of a fixed monthly price. Charges can be tailored based on a driver’s personal circumstances and costs will not incur admin or cancellation fees.
The new service has been described as a “fuss free” product aimed specifically at the “on the go” generation.
The new LV service will be known as Flow with LV, guaranteeing drivers will always get the best piece
After running a quote, road users will be presented with a fixed price for the first month and a guaranteed maximum price for each of the following three months.
This means that charges can change every few months as motorists’ circumstances change – rather than being locked into fixed prices.
The new system promises a “significantly shorter” application process with no long term commitment and freedom to change a policy whenever.
Flow will simply require drivers to provide a picture of their driving licence and answer 14 straightforward questions to calculate the best possible price.
But, LV has warned any existing no claims discount a customer holds will play no part in the amount they pay.
Instead costs will be calculated based on a customer’s claims history and their specific circumstances at the time of the application.
LV has also said prices could also rise for drivers every three months even if their personal circumstances do not change.
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They warn drivers the company will also let drivers know of any changes at least seven days before a new payment is taken.
Heather Smith, Managing Director of LV said it was “important” the process of car insurance “evolves” post-lockdown.
She said the service allows drivers to update their agreements at a “click of a button” meaning policies can change “quickly and easily”.
Ms Smith said: “The way people buy products and services online has changed enormously, and it’s important that the process of taking out car insurance evolves in the same way.
“Flow gives drivers a simplified insurance experience, with a quick journey, competitive pricing and the flexibility to change their policy as and when they want to, at a click of a button.
“There’s no admin fees, no instalment charges and you don’t need an existing no claims discount to get the best price.
“Whatever drivers want to do – change the mileage, change the driver or even change the car – Flow means it can be done quickly and easily.”
Standard cover includes comprehensive insurance, uninsured drivers and misfuelling cover to ensure motorists are fully protected against any problems.
They say adding and removing drivers on the policy is easy and road users will be able to bump up their level of cover for just £2 a month.
This will allow policyholders the guaranteed use of a hire car if a vehicle is being repaired or has been stolen.
An extra £2 a month will also cover motor legal expenses meaning road users can secure help when taking action against a road user or defending against a prosecution.
LV has suggested that further products in the Flow range are currently being explored so further money saving options could be on the horizon.
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