ERGO and SIXT trial pay-as-you-drive coverage for fleet vehicles in Germany

ERGO and SIXT have signed a collaboration agreement covering 10,000 vehicles in the rental company’s fleet in Germany. The objective of the partnership is to provide an innovative insurance solution for the cars, to which end the companies are now running a pilot project, launched on 1 September, to test the use of a dynamic, pay-as-you-drive pricing model. Subsequently, a monthly evaluation will be performed to determine each vehicle’s actual risk situation based on recent usage. This data will then be used to calculate the insurance premiums for each individual vehicle and to update them on an ongoing basis.

Under the new model, factors informing the calculation of the premiums for the international mobility provider’s fleet vehicles include whether, when and how long a given car is rented out. This variable pricing approach enables SIXT to reduce insurance costs – for instance, for the offroad time vehicles spend at rental car locations. For ERGO, the new model makes it possible to evaluate the risks with even greater specificity and, in turn, offer insurance solutions for individual vehicles within the fleet.

Karsten Crede, Board member of ERGO Digital Ventures AG with responsibility for ERGO Mobility Solutions – which is the insurer’s automotive and mobility subsidiary – said the following about the new partnership: “Innovative mobility formats call for innovative product solutions. Our offer provides just that: a dynamic, pay-as-you-drive pricing model that is innovative, cost-effective and tailored to the mobility formats of tomorrow – whether that’s vehicle rental, sharing or subscription. With SIXT, we’re happy to have gained a partner that perfectly embodies the future of mobility.”

Ronny Krebs, Executive Vice President Global Business Services at SIXT, adds: “Innovation is in SIXT’s DNA, so we’re pleased to be working with ERGO on this groundbreaking project. Our first impressions from the partnership have been very positive.”

This collaboration is the first project ERGO and SIXT have undertaken together for the German market. ERGO and SIXT count among the leading providers in their respective sectors; SIXT is the market leader in Germany.