The problem with paying upfront

“Money upfront, in the event of a hypothetical problem later on.” It doesn’t sound like a catchy back-of-the-box feature to draw you in, does it? Which is why most insurance cover is sold on what you get if a problem arises, with any mention of the word “excess” finding its way onto the small print.

Insurance companies will argue they need payments at the beginning of the month just in case people don’t pay and they're left out of pocket. However, with the technological advancements of credit cards, credit scorecards and payment infrastructures, such concerns don’t hold the same weight as they have in the past.

Everything is better at the end of the month

At first glance, the prospect of paying for insurance at the end of the month instead of the beginning doesn’t seem to change much. Well, other than switching payment dates around. However, things are a lot different.

Charging at the end of the month means customers only pay for the actual cost of claims, rather than an estimated figure. As a result you’re paying for the real cost of your insurance, rather than an estimated fee.

This model provides more transparency and offers a fair solution for making sure that your prized bikes are covered and you’re not out of pocket. Why pay what an insurance company thinks you owe when you can pay the real cost? It’s a smarter way to get covered.

Bicycle insurance with Laka

If you happen to be looking for bike insurance, paying for cover at the end of the month isn't a bold idea for the future. It’s happening right now.  

At Laka, we charge customers at the end of the month, with each individual’s monthly cost capped at a personal maximum based on the value of their bike and gear. You never pay more than the cap, which means you don’t have to worry about unnecessary charges.

We’re able to do this because our set up is collective driven and puts power in the hands of our customers. 80% of what you pay goes to help other members get back on the road after a problem - everyone chips in, and our collective of cyclists is stronger as a result.

The Laka Explainer Video

Collective cover: There’s strength in numbers

By changing the insurance conversation to a collective, customer-centric dialogue, we’re able to make payments work for everyone. At the end of each month, we pay out our claims to the collective and then share the costs with our customers — the fewer claims in the community, the lower the monthly outgoings for our members.

The result is a fairer system that doesn’t include any guesswork, especially as costs never go above the initial cap. For example, if your cap is £8, then your insurance will never exceed that amount - and will typically be lower.

Being collective-driven means placing emphasis on human touch. Technology drives Laka, providing the tools to get swift results when there’s an issue with your bike or gear. But humans make it happen, with a friendly team on hand to resolve claims and answer queries.

Everything at Laka is done by an expert team in-house too, which means claims are settled efficiently, often within one day. There’s no waiting around or a build-up of costs, and the collective benefits as a whole.

It pays to be part of the pack…

... unlike other outdated insurers, we don’t charge a fixed sum upfront. Instead, we calculate your premium based on the actual cost of claims that month. Get a quote today and see how much you can save with the collective.