Insurance firm Zego has partnered with telematics specialist ABAX to offer fleets a new usage-based insurance policy.
The premium is determined by the amount of time that vehicles are on the road, or the distance that they cover.
A minimum base rate ensures that vehicles are always covered, then a top-up premium is calculated based on usage.
Morten Strand, CEO of ABAX, said: "The world of business and commerce has been changing rapidly for some time, although no-one could have foreseen the impact of Covid-19. 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."
In order to measure a vehicles usage, Zego will use the ABAX Open Platform telematics system.
Fleet policyholders can enjoy a range of additional benefits, including the ability to track vehicles, monitor driver behaviour, and keep fully compliant HMRC tax records.
Dom McCormack, chief of staff at Zego said: “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 our flexible fleet insurance solutions at an increased 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.”