Laka community bike insurance

[DE1975]

https://www.laka.co.uk

Came across this novel approach to bike insurance which seems to essentially amount to a community scheme. You sign up for the amount of cover you want and are pooled with other members and you effectively cover each others claims.

If nobody makes a claim in the month then nobody pays a premium, but your monthly premium is capped in months when there are unusually high number of claims.

The example on their site says that for £2k of cover, their members pay a typical £7 a month, and is capped so they never pay more than £17 in any 1 month.

Seems like an interesting idea. Anybody tried it yet?

[deckster]

Struggling to see how this is different from standard insurance, except that with this you don't know how much you're actually going to pay month-on-month. Communal pooling of risk is exactly what insurance is, after all.

[sas62]

It's month bu month. So if there are no claims one month, then no-one pays any premium that month. (At least thats my understanding)

[LordFlathead]

And the business pays the interest on the capitol amount to who; the business?

[leyorkie]

Have you seen this, coincidence that you raise this today
Car insurance: Why pay when you are not driving? http://www.bbc.co.uk/news/business-45758926
It’s about alternative insurance options Laka is mentioned

[Lucacc]

I've seen they're offering Free Liability Insurance that's a decent deal.

https://www.laka.co.uk/club

Just wondering if they insure motorbicycles as well that would be ace. I have covered 5 bicycles with them so far, and it's impressive, way cheaper than my previous insurer.