HUGO CAR INSURANCE REVIEW FOR 2023: Pros & Cons

When Hugo car insurance was launched in 2021, it came as a relief to car owners who do not drive their cars daily. If you drive a car in the United States, you’ll understand the need for insurance coverage. But it’s always disheartening when you’re not a daily driver and have to pay the full premium whether you drive the car daily or not. It’s always an issue but nothing could be done about it until 2021, when Hugo Car Insurance was launched. It was the first of its kind to offer pay-per-mile insurance and has 4.8-star ratings on Trust Pilot. Today, our mission is simply to review Hugo’s car insurance coverage, explain how it works, how to get your coverage, types of coverage, its pros and cons, and everything you need to know about it.

Hugo Car Insurance Overview

Hugo Insurance is a recently established company within the vehicle insurance industry. The insurtech startup first unveiled its beta platform in the year 2020, and in January 2021 it officially launched. The insurance provider presently provides drivers in 13 states with on-demand auto insurance coverage. These states include Alabama, Arizona, California, Florida, Georgia, Illinois, Indiana, Mississippi, Ohio, Pennsylvania, South Carolina, Tennessee, and Texas. The specific policy offerings of the entity in question exhibit variation across different states.

Motorists have the flexibility to initiate or terminate their insurance coverage at any given moment, thereby solely incurring costs for the duration for which they want such protection. According to data from Insurify, the cost of Hugo’s insurance rates can exhibit substantial variation based on factors such as the state of residence, policy type, and individual driving history. Hugo charges an average of $41 per month for a basic (liability-only) policy, while a full-coverage policy costs $75 monthly.

Hugo Flex offers drivers the flexibility to temporarily suspend or resume their coverage without incurring any additional charges. Furthermore, it’s possible to procure coverage for a minimum duration of three days. Instead of providing a monthly insurance premium estimate, Hugo employs a methodology to determine the cost of car insurance for a single day as well as the potential savings that may be achieved by opting out of coverage on days when the vehicle is not in use.

How Does Hugo’s Car Insurance Work?

Hugo provides drivers with adaptable and readily available insurance coverage options. Policyholders have the option to make “micropayments” for three days or up to a maximum of six months, contingent upon the specific plan in question. Hugo does not require any initial fees, and drivers have the option to make payments as they use the service without the need for an upfront payment. Due to the implementation of Hugo’s artificial intelligence-based methodology in insurance underwriting, the process of obtaining coverage has been significantly simplified, requiring only a few minutes.

In contrast to several pay-per-mile insurance providers, such as Metromile, Hugo does not employ a telematics system to monitor an individual’s driving habits. Telematics solutions have the potential to provide financial benefits to cautious drivers, but policyholders may potentially encounter premium adjustments due to instances of abrupt turns or aggressive braking.

The suitability of Hugo as a driver is contingent upon various aspects. If an individual engages in daily driving and does not require the convenience associated with the option to temporarily suspend or terminate insurance coverage, it is possible that Hugo may not be the most suitable insurance provider for them. Lastly, if your objective is to achieve a high level of policy customization, allowing for precise specification of coverage types and amounts, Hugo may not be the most suitable option.

Is Hugo Insurance Worth It?

Sure, it is. Hugo has garnered a substantial number of good customer reviews, as seen by its impressive Trustpilot rating of 4.8, based on an extensive pool of over 3,400 reviews. You’ll agree with me that no company will get a 4.8-star rating unless they are good. However, the ultimate decision of whether Hugo is good or not depends on individuals varying insurance needs.

Does Hugo Report to the DMV?

Yes! Hugo’s insurance partner will automatically send your new insurance information to the DMV as you sign up. However, keep in mind that the DMV’s system may take 3-5 days to update and display your new coverage. If you need this to happen sooner, Hugo recommends going to the DMV in person; just remember to download your policy documentation from your member account and bring it with you.

Does Hugo’s Insurance have a Grace Period?

Yes, Hugo car insurance offers a grace period of 10 days after the receipt of the final billing notice.

Hugo Insurance Coverage

Hugo offers three different coverage options. These are flex, basic, and full coverage.

#1. Flex

With Hugo’s Flex plan, car owners who are not daily drivers have the option to acquire coverage for certain durations of time. This can be 3, 5, 7, 14, or 30 days. Once drivers have acquired a predetermined number of days, they can activate or deactivate their coverage as required. As an illustration, if a motorist does not intend to operate a vehicle on a specific day, they have the option to deactivate their insurance policy for that day. The flexible plan satisfies the minimum insurance requirements mandated by the state.

#2. Basic

Hugo’s Basic plan has a resemblance to the flex plan; however, it lacks the provision for drivers to exercise discretion in initiating or discontinuing coverage. Motorists have the option to acquire insurance coverage for durations of three, seven, 14, or 30 days, as well as the alternative of obtaining coverage for a complete six-month period. In addition to the provision of liability coverage, the basic plan also offers options for medical care and accidental death coverage.

#3. Full

Hugo’s comprehensive strategy encompasses a “full-coverage” policy. Hugo’s full coverage involves liability insurance as well as comprehensive collision, medical, and accidental death coverage. Motorists have the option to acquire insurance coverage for durations of three, seven, 14, or 30 days, as well as six months.

Hugo Car Insurance Review

On Trust Pilot, Hugo car insurance has 4.8-star ratings. This is considered fair, judging from the positive reviews that some of the customers dropped over there. The following are some of the reviews of Hugo car insurance coverage on their website:

#1. Convenient and Adaptable Payment Methods

Tracy T, a resident of Inglewood, California, and a single mother of two expressed her appreciation to Hugo for simplifying and providing flexibility to car insurance policies. According to her, the ability to pay insurance exclusively for the duration in which her vehicle is used is awesome.

Swegio GS, who resides in Garden Grove, CA, reported being involved in an accident around one year ago, resulting in a significant increase in their insurance premium. Hugo’s car rental service only required payments for the specific days that the user used the vehicle. The cost savings resulting from this have provided her with a substantial sum of money that can be allocated towards their forthcoming house renovations.

#2. Great Experience

Amber Y, a resident of Moreno Valley, California, has expressed the following viewpoint: The use of Hugo proved to be a highly positive and enriching experience. Their service has a high level of convenience and user-friendliness. This feature renders it highly suitable for cost-conscious drivers.

#3. Ease of Use

According to Danielle S, a resident of Palmdale, California, Hugo Insurance is commendable due to its numerous benefits and user-friendly interface.

#4. Outstanding Customer Representative

Another satisfied user remarked that Hugo’s customer service is exceptional. When assistance was required to initiate the task, the customer representative proved to be highly supportive. Afterward, all that was required of her was to transmit a concise text message via her mobile device, enabling the customer service department to activate or deactivate the service according to her preferences.

#5. Ideal for My Lifestyle

Evan K, a resident of Twentynine Palms, California, expressed that Hugo aligns well with his lifestyle because he doesn’t drive consecutively. Evans cares for someone with disabilities; since their movement is limited, Hugo makes it possible to pay for my exact needs.

#6. It Helps Me Save On Car Insurance

According to Tracy R., a resident of Rancho Cordova, CA, Hugo is a highly effective means of saving money. Based on the level of satisfaction he experienced, he claims that the Hugo program is highly commendable and warrants greater awareness among a wider audience.

#7. Incredible Experiences

According to Brandy M., a resident of Stockton, California, Hugo has provided one of the most remarkable experiences in the realm of vehicle insurance. Hugo exhibited a lesser degree of intimidation compared to insurance companies that enjoy greater recognition.

Does Hugo Car Insurance have Roadside Assistance?

Of course not. Hugo Car Insurance does not, in any way, offer roadside assistance.

Does Hugo Car Insurance Offer Ridesharing Insurance?

No, Hugo Car Insurance does not provide ridesharing coverage as an additional policy feature or endorsement.

What Benefits Does Hugo Car Insurance Offer?

Hugo Car Insurance provides a range of perks to its consumers, which include the following:

The availability of telephone services around the clock
Hugo Insurance offers customers the option to make premium payments through their credit and debit cards.

How Does Hugo Insurance Calculate Insurance Rates?

Car insurance companies protect their risk-assessment algorithms as proprietary information, and Hugo Insurance is not an exception in this regard. Hugo Car Insurance will thoroughly investigate several factors, such as one’s driving history, age, gender, marital status, and place of residence. Additional aspects that will be considered include the make and model of your car, your insurance history, and how you use your automobile.

Does Hugo Car Insurance Use Your Credit Score?

Yes, it does but there are instances where the use of credit scores is not considered in determining one’s car insurance premium and coverage. The following are these instances:

#1. Legal Prohibition

In the states of California, Hawaii, and Massachusetts, it is prohibited for vehicle insurance companies to use an individual’s credit report as a determinant in their rating process.

#2. Use of Telematic Data

Hugo and many car insurance companies also determine insurance premiums only based on telematics data. They simply gather data regarding an individual’s driving patterns and employ it to assess the level of danger associated with their driving capabilities. Should this method be adopted, they may forgo your credit score history.

How Can I Get Hugo Car Insurance Quote?

The following are steps on how to get a Hugo car insurance quote:

Go to the official website of Hugo Insurance.
Complete the online application form for insurance quotes. To complete the requirements, it is often expected that individuals provide some personal details, such as their full name, car information, driver’s license, and residential address.
Please ensure the accuracy of the information and proceed with submitting your application.

Final Thought

Although pay-per-mile sounds interesting for people who don’t drive their cars daily, you still need to assess your insurance needs and compare quotes before buying any policy. Hugo has astounding reviews across the net compared to several other insurance companies, making it an ideal company. However, you must remember that it has its limitations as well. Therefore, assessing your insurance needs is key to getting a relevant policy.