Insurance technology firm Zego is collaborating with e-scooter company Ginger for the United Kingdom’s first trial of e-scooter rental legalization on UK roads, said Insurance Journal. The insurtech will be providing coverage for the 12-month trial.
The UK government recently announced its intention to make rental e-scooters legal on thoroughfares. Before doing so, officials will be running a trial period, which will last until next year.
As part of this initiative, Ginger has released 100 scooters with at least 300 more by this month. Zego will act as third-party liability insurance in compliance with the government’s requirement.
It will be insuring the units, which is incorporated into the user registration process. The coverage will include additional personal accident policies, which will be periodically enabled whenever the rider uses the scooter.
To alleviate concerns about additional expenses, Ginger ensured the public that the company will be shouldering the cost.
Zego’s policies for this initiative was a modification of its existing offering specifically for this project. This coverage is expected to help Ginger comply with safety and insurance regulations while getting the opportunity to gather data.
Data that will be gathered by the e-scooter company will be used to analyze and understand riders’ behaviors. This will inform decision-making processes on the part of the government regarding the feasibility of allowing e-scooters in UK roads.
Both firms are optimistic about this collaboration. According to Zego CEO and co-founder Sten Saar, the partnership allowed the insurtech to play a significant role in making the initiative safer and more sustainable.
Meanwhile, Ginger CEO Paul Hodgins is hopeful that this partnership will bring an eco-friendlier transportation option to UK residents with its zero-emission e-scooters.
The first-ever e-scooter trial was launched in the Tees Valley located in the northeast of England.