Huddle, Poncho and other new players shake up car insurance in 2020

By Tara McCabe ·
Man and woman driving in car, insured with new Australian car insurer.

New on the scene, Aussie car insurance providers Huddle, Poncho Insurance, Stella and UbiCar are on a mission to prove that getting cover for your wheels doesn’t have to be complicated. 

From fintech Huddle’s bot-powered cover to UbiCar’s app-based policy that rewards you for driving safely, these four new providers really are rewriting the rules for car insurance.

Huddle, founded 2016
Promoted
  • Fixed Kilometre Plans available
  • AI-assisted help 24/7
  • Optional extras, including Kanga Cover

Huddle co-founder Jonathan Buck says that he and business partner Jason Wilby have built car insurance that’s simple and easy to understand.

“We offer our customers AI assisted help when they build their policy and online 24/7 claims processing, so they can receive decisions in minutes,” says Buck.

Huddle’s Comprehensive Car Insurance policy is available as a Fixed Kilometre Plan, meaning you could save a bit of money on your premium, if you don’t drive your car that often. Huddle is also the only Australian insurer to offer Kanga cover, meaning there’s no excess for the first animal collision each year.

Poncho Insurance, founded 2019
Promoted
  • Lifetime guarantee on repairs
  • No lock-ins or cancellation fees
  • 30% temporary premium reduction

Head of Underwriting, Linden Stephens says Poncho may be new on the block but it comes with a tonne of insurance and tech clout and is backed by IAG, Australia’s largest insurance group.

One particularly unique feature of Poncho’s Comprehensive Car Insurance is that it works just like a monthly subscription service. This means that you won’t be charged a fee if you have to cancel, or as Stephens puts it Poncho won’t penalise you for not being a fortune teller.

Lastly, Stephens says Poncho’s efficiency-focused operation means it can respond to changes in the market quickly. An example of this is Poncho’s current 30% premium reduction for new and existing customers as a result of everyone driving less during Covid-19.

Stella, founded 2020
Promoted
  • No claim reward up to $300
  • Baby gear cover up to $2,000
  • New car replacement (conditions apply)

Founded by entrepreneur Sam White, Stella is an insurance company run by women, with women in mind. New on the scene this year, Stella is underwritten by insurance giant QBE.

Stella’s Comprehensive Car Insurance comes with a generous maximum $2,000 cover for baby gear, including prams, strollers and other essential baby items. Plus, if you consider yourself a safe driver and you don’t make any claims in three consecutive years (not counting not-at-fault claims), then you could bag yourself a maximum $300 no claim reward. That’s a $300 discount on any claims you do have to make.

Another feature worth mentioning is the new car replacement cover. This will apply if your car is written off within three years, you were the first registered owner of the car and it was driven less than 60,000 km.

UbiCar, founded 2018
Promoted
  • Lower monthly premiums for safe driving
  • Usage based insurance
  • Insurance for rideshare drivers

New kid on the block UbiCar is using app-based technology to disrupt the industry. With UbiCar’s nifty app, you’ll receive a driving score each month. So the safer you drive, the higher you’ll score and the lower your premium will be. 

That’s not all. This app-based tech works across all of UbiCar’s policies, including its rideshare cover. That’s right, if you are a rideshare driver with Uber, Ola or any other rideshare service, UbiCar could offer you more cost effective cover. All you have to do is make sure you drive safely!

Finally, UbiCar offers usage based insurance (which is also where the name comes from!) UbiCar’s PPK (pay per kilometre) policy is for people who drive less than 15,000kms per year. If you have this particular package, UbiCar will charge you a low monthly premium for when you’re not driving and a few cents per km when you are.

Didn’t find the car insurance policy you were after? Head to Mozo’s compare car insurance hub for more options.

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Tara McCabe
Tara McCabe
Money writer

Tara McCabe writes across all areas of personal finance here at Mozo from banking through to insurance. Tara is expert at practical money tips, showing readers ways to live richer and be socially conscious while doing it. She earned a BA (Hons) in English Literature from Canterbury Christ Church University.