Is Hugo Car Insurance Legit? The Truth About This New Insurtech Company

Hugo is a new insurtech company that launched in 2020, offering an innovative type of on-demand car insurance. Their ads boast cheap rates, fast sign-up, and the ability to turn your coverage on and off whenever needed. But is Hugo car insurance really as good as it sounds? Is it even legit?

This article provides an in-depth look at Hugo insurance to help you decide if it’s right for your needs. We’ll cover:

• What is Hugo car insurance?
• Is Hugo legit? Licensing and reputation
• Hugo insurance products offered
• How Hugo’s on-demand insurance works
• Hugo insurance pros and cons
• Cost of Hugo insurance
• Hugo customer reviews and ratings
• FAQs about Hugo auto insurance

What is Hugo Car Insurance?

Hugo is an online insurance company that offers pay-per-mile auto insurance in 13 states. Their policies provide basic liability and optional collision/comprehensive coverage.

Key features include:

• On-demand insurance – Ability to turn coverage on/off as needed (with some limitations)

• No downpayment – Policies start at just 3 days of premium

• Micropayments – Can pay premiums every 3 days, weekly or monthly

• Instant coverage – Proof of insurance provided within minutes

Hugo markets itself as an affordable way to get minimum liability car insurance with maximum flexibility.

Is Hugo Car Insurance Legit?

Yes, Hugo is a legitimate insurance company. They are a licensed and regulated insurer, not a scam.

Some key facts about Hugo’s legitimacy:

• Licensed insurer – Hugo is licensed to sell insurance in all states where offered.

• Underwritten policies – Hugo auto policies are underwritten by regulated insurers.

• Excellent rating – Rated A- Excellent by A.M. Best for financial strength.

• Real customer reviews – Hugo has over 10,000 verified customer reviews online. Most are very positive.

• Responsive support – Hugo has helpful customer service via email, phone and chat.

So while Hugo is newer and smaller than big brand insurers, they do offer valid car insurance coverage backed by legitimate underwriters.

What Insurance Products Does Hugo Offer?

Hugo provides auto insurance in 13 states currently. The exact types of car insurance policies and options available depends on your state.

Liability Coverage

• In every state, Hugo offers minimum required liability insurance to meet state laws.

• Liability coverage options for property damage and bodily injury vary by state.

Collision and Comprehensive Coverage

• Collision and comprehensive are optional except in Illinois, where Hugo requires it.

• These coverages pay for damage to your own car from collisions, weather, theft, vandalism etc.

Uninsured/Underinsured Motorist Coverage

• In most states, Hugo includes uninsured motorist bodily injury coverage.

• Uninsured motorist property damage (UIMPD) is optional in some states.

How Does Hugo’s On-Demand Insurance Work?

One of Hugo’s big selling points is the ability to turn your insurance on and off on-demand. But this feature has some limitations:

• Flex plans only – On/off only available with Flex plans in CA and IL. Other plans must stay on.

• Fee after lapses – Lapses over 3 days add fees when restarting coverage.

• No refunds – Already-paid premiums are not refunded for unused days.

• Rate hikes – Frequent lapses can trigger rate increases.

• DMV issues – Repeated lapses can lead to suspended registration.

So while you can pause Flex plans in two states for short periods, long off-periods frequently interrupting your coverage will cause problems. Maintaining continuous insurance is still recommended.

Pros of Hugo Car Insurance

Hugo insurance has some advantages over traditional insurers, including:

• Lower downpayment – Hugo plans start at 3 days premium vs 30 days typically.

• Micropayments – Can pay every 3 days, weekly or monthly instead of lump sums.

• Instant coverage – Get proof of insurance documents immediately upon signup.

• On-demand (with limitations) – Pause coverage easily in CA and IL with a Flex plan.

• Policy control online – Manage your policy and billing completely via Hugo’s app and website.

So Hugo provides more payment flexibility and faster coverage at lower upfront cost, which can benefit certain drivers.

Cons of Hugo Car Insurance

Some of the downsides of Hugo insurance to consider are:

• Limited products – Mostly liability-only plans are offered, with minimal options for higher coverage.

• On-demand limitations – Pausing coverage frequently can increase costs and DMV hassles.

• Not yet nationwide – Hugo only available in 13 states currently.

• No agents – Those who prefer in-person service won’t get it from Hugo.

• Spotty claims reviews – Very few online reviews regarding Hugo claims handling process.

• New company – As a startup insurer formed in 2020, long financial track record cannot be evaluated.

So while Hugo does offer lower prices and payments upfront for some, the tradeoff is less choice in coverage and more hassles managing an on/off policy.

How Much Does Hugo Car Insurance Cost?

Hugo advertises rates as low as $28 per month for minimum liability coverage. However, their average cost is higher than the cheapest insurers but lower than top brands for comparable policies.

Some sample monthly Hugo auto insurance rates by state:

• California – $60 to $150
• Texas – $100 to $250
• Illinois – $75 to $200
• Georgia – $125 to $300

Hugo’s cheapest rates are liability-only with low limits. Adding collision/comprehensive or higher coverage increases costs significantly.

Compared to major insurers, Hugo offers low monthly payments but may cost 10-15% more over a full 6-month policy term. Still, they can represent big savings versus traditional companies for drivers needing bare minimum insurance.

Those with spotty driving histories can see some of the biggest savings with Hugo’s rates.

Hugo Car Insurance Reviews and Ratings

Hugo currently has over 15,000 reviews on Trustpilot, with an excellent overall rating of 4.7 out of 5 stars. Here’s an overview:

• 89% rate Hugo as “Excellent” (5 stars)
• 7% rate them as “Great” (4 stars)
• 3% rate them as “Average” (3 stars)
• 1% rate them as “Poor” (1-2 stars)

Positive feedback cites ease of signup, low payments, and good claims service. Negative reviews mainly cite higher rates than expected, policy lapse notices being sent incorrectly, and poor claims experiences.

Overall, most customers have had good experiences with Hugo’s flexible payment options. Areas that need improvement appear to be policy administration issues and claims handling.

FAQs about Hugo Car Insurance

Is Hugo cheaper than regular insurance companies?

For minimum liability insurance, Hugo offers some of the cheapest rates available, often 10-15% less than major insurers’ prices. But they are not the cheapest for all coverages in all states.

Does Hugo Insurance check credit?

No, Hugo does not use credit scores or reports to determine your rates. They mainly factor in your driving record, location and desired coverages.

Can Hugo insurance be cancelled anytime?

Yes, you can cancel a Hugo policy anytime as long as you have no active claims. Just withdraw your remaining premium balance and contact Hugo to close the account.

Does Hugo offer SR-22 insurance?

No, Hugo does not currently provide SR-22 filings for high-risk drivers. Their auto insurance plans are standard personal policies only at this time.