Laka bicycle insurance offers cyclists something different from other insurers. Unlike old-fashioned insurers who charge a flat fee and can be reluctant to eat into their profits to pay out claims, Laka is an optimistic company who are motivated to settle them.
Their unique collective model means they work with the customer, not against them.
Laka turns the insurance industry on its head by settling claims on behalf of the customer when they happen. Then, at the end of each month, it asks all of its customers to cover their contribution by splitting these costs between them. There’s a cap on the maximum amount that you can be billed each month, so overpaying isn’t something to worry about.
The cost per month varies depending on how many claims Laka has received. So, in theory, if there were no claims in a given month, its customers wouldn’t pay anything. Laka is so confident that you’ll like its insurance, that it’s offering 30 days of free cover to Cyclingnews readers – full details at the bottom of the page. Or head to Laka to get yourself a quote and claim the offer.
“We don’t ask our customers for any money upfront. Because we can’t predict the future, we can’t possibly know how many claims we might have in a month. Why do we still live in a world where insurance companies take my money upfront?” asks Tobi Taupitz, CEO and co-founder of Laka.
That means that rather than a big insurer pocketing the excess cash when there are fewer claims than anticipated, or being reluctant to eat into its profits to pay out, Laka’s entire policyholder community benefits if there are fewer claims. Being part of the Laka community means committing to look after yourself and your stuff for the sake of the group.
How does Laka work?
80 per cent of all monthly payments by policyholders go into the collective pot (fixing, replacing, helping), with the remaining 20 per cent going back into Laka to keep their wheels spinning.
“That means, ironically, the more claims we settle, the more revenue we generate as a company,” says Taupitz. “That’s completely the opposite from insurance companies, who take your money first and the more claims they pay out, the less stays with them. Whereas insurance companies make more money when acting against their customers, we make more money when acting in our customers’ best interests.”
And Laka’s claims service is second-to-none, with a five-star rating. Laka has been voted ‘Best Cycling…
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