Zego Terms of Business

These terms of business apply from 2nd October 2023

This agreement sets out how we provide our services to you. If you use our services to obtain a quote, purchase, administer, or cancel an insurance policy then this agreement will apply, so please make sure you’ve read and understood it.

Who we are

We are not an insurance company – we act as an agent for different insurance companies to arrange insurance. We can answer your questions on behalf of the insurance companies along with other things, such as collecting policy premiums and issuing your policy documents to you.

Our registered name is Extracover Limited, but we operate under the trading name Zego. Where we say “we” or “our” or “us” in this agreement, we mean Zego. Where we say “you” or “your” we mean you, our customer. Our formal details are set out at the end of this agreement.

If there’s anything in this agreement that you don’t understand, or if you have any questions, please get in touch with us and a member of our team will be happy to help. You can contact us by logging in and using live chat, by calling us on 020 3308 9800, or by emailing [email protected].

Our products and how we sell them

Our products. We sell insurance products that last for either 30 days or 1 year, as well as insurance products that operate on a pay-as-you-go basis. As long as you meet the eligibility criteria, you can buy any of these products on our website, through our app, or over the phone.

Pay-as-you-go products. If you purchase a pay-as-you-go policy you will need to open a pay-as-you-go account on our delivery app and keep your account topped up with enough funds to cover the costs of your pay-as-you-go insurance. If you use our delivery app our delivery app terms and conditions will also apply to you.

Quotes. Any quote you receive from us is valid only for the period in which you have the page open with the quote on screen or for any other period otherwise indicated by us to you.

Telematics. Some of our products require you to install our mobile telematics application “Sense” or add a telematics device to your vehicle. If you purchase a telematics product, you must make sure that you enable permissions so that we can receive your telematics data and provide you with the fairest price for your product. If you disable permissions we may increase the premiums you pay, remove any discount that has been added to your policy premium and charge you the difference, or cancel your insurance policy. You can find more detail of how we use your telematics data in our Privacy Notice.

Your insurance cover. The details of the insurance cover, including your rights and obligations, will be included in your policy and associated documents. We will make sure that you receive full details of your insurance cover and any documents that you are required to have by law.

How we earn money

Commission. We make most of our money through the commission we earn from the insurance companies we work with. We also receive some commission from our premium finance provider where we arrange for you to take out premium finance to pay for your policy (see Premium Finance below).

Fees. But, this commission does not cover all of our costs, so in some situations we may charge you a fee as well. Our fees cover things such as our costs for arranging the insurance, setting up your policy and managing your account. This allows us to keep policy premiums as low as possible for you.

Please be aware that fees charged by us are not refundable.

You can see a list of the fees we charge here.

Premium Finance

This section is relevant if you pay for a policy using premium finance arranged by us.

Where you purchase an annual policy you may pay for this upfront or in monthly instalments. If you choose to pay in monthly instalments, we will arrange for you to enter into a premium finance agreement with our premium finance provider. This means you will be taking out a loan with our premium finance provider which will be repaid by monthly direct debit. The terms and conditions of the relevant premium finance agreement will apply to the repayment of the loan. The premium finance provider will charge interest on the loan, and fees and charges will apply in some circumstances. This information will be contained in the agreement between you and the premium finance provider.

If you fail to pay any of the monthly instalments we may cancel your policy. We or the premium finance provider may also recover any outstanding amounts owed under your policy and/or premium finance agreement.

Using premium finance (rather than paying the premium in one amount) makes the overall cost of the insurance more expensive and failing to make premium finance payments could affect your credit score/worthiness and the validity of your insurance.

Our responsibilities to you

This section is relevant for all of our customers.

In the unlikely event that use of our services causes you loss or damage of any kind, our liability to you will be limited to the extent outlined below.

We are responsible to you for:

Foreseeable loss and/or damage caused by us. If we fail to comply with this agreement, we will accept responsibility for any loss/damage you suffer that is a foreseeable result of our failure to comply with this agreement, or our failure to use reasonable care and skill. Loss or damage is foreseeable if it is an obvious consequence or if, at the time you accepted this agreement, both we and you knew it might happen.
Liabilities that would be unlawful for us to exclude or limit. Including death or personal injury caused by our employees, our subcontractors or agents’ negligence, and fraud or fraudulent misrepresentation.

We are not responsible to you for:

Unforeseeable loss and/or damage. If the loss or damage is not an obvious consequence of our failure to comply with this agreement/our negligence, or if, at the time you accepted this agreement, neither we nor you could have anticipated that such loss/damage might happen, then we will not be responsible to you for it.
Events outside of our control. If the services we provide are in any way interrupted by an event outside our control, we will contact you as soon as reasonably possible to let you know. We will not be liable to you for any loss or damage arising from events outside our control. These include but are not limited to, loss or damage caused as a result of viruses, malware or ransomware attacks, and any action taken by you that may put your device at risk.
Loss or damage incurred by you as a result of your failure to download relevant updates when we ask you to.

Your responsibilities to us

You must answer any questions we ask honestly and let us know if any of your answers to these questions change during the period you have an insurance product with us.

If you don’t tell us something that would materially impact our decision to offer you cover, or affects the premium you would pay, we may be entitled to void the insurance policy and keep the premium, or reduce the amount that is paid to you to settle any insurance claim that you have made.

Examples of material circumstances are:

Anything which would generally be understood as being something that an insurer offering motor insurance would expect to be told. Examples of this are: no claims discount information, the length of time you’ve held a driver’s licence, driving convictions including any penalty points, your address, your vehicle type, etc;
Special or unusual circumstances relating to the risk. An example of this is you know you have a medical condition which means you should not drive your vehicle; and
Any particular concerns which led you to seek insurance cover for the risk. An example of this is you know your vehicle is damaged or faulty before you purchase your policy.

Termination and transfer of this agreement

What happens if you breach this agreement?

If you breach this agreement, we may end your right to use our services. However, if what you have done can be put right, we will give you a reasonable opportunity to do so first.

Valid reasons for ending your right to use our services may include:

Non-payment of premium or fees;
Failure to provide requested documentation or information;
Deliberate failure to comply with terms set out within this agreement or any insurance product sold to you;
Deliberate or reckless misrepresentation or if we reasonably suspect fraud;
Use of threatening or abusive behaviour or language, or intimidation or bullying of our staff/suppliers.

If we end your rights to use our services:

You must stop all activities authorised by this agreement, including any use of our app;
You must take all reasonable steps to delete or remove our app from all devices in your possession or control and immediately destroy all copies of our app which you have;
We may remotely access your devices and remove our app from them;
We may cease providing you with access to our app.

Can we transfer this agreement to someone else?

Yes. We may transfer our rights and obligations under this agreement to another organisation. We will always let you know in writing if this happens, and we will ensure the transfer does not affect your rights under the agreement.

Changes to this agreement

From time to time, we may need to change this agreement (including our fees) to reflect changes in the law, our products, our app’s content or features, the cost of administering your account, and the cost of running our business.

If we make changes that are in your favour, we’ll tell you once we’ve made them. Otherwise we will give you reasonable notice by email with details of the change.

If you continue using our services after being given reasonable notice of any changes we make, you will be considered to have accepted those changes.

If you disagree with any of the changes, you have the right to close your account with us at any time. For pay-as-you-go customers, this will mean that you are no longer able to buy insurance cover from us on a pay-as-you-go basis.

Promotions and Competitions

We may offer promotions or carry out competitions from time to time. These will be subject to the promotion or competition terms and conditions in place at the time of the promotion or competition.

The legal bit

This section is relevant for all of our customers.

Contact Details. You must let us know if your contact details change so that we can contact you about your products and the services we provide.

Third Parties. This agreement does not give rise to any rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this agreement.

Severance. Each paragraph of this agreement operates separately. This means that, if any court, or relevant authority, decides that any part of this agreement is unlawful, the remaining paragraphs will remain in full force and effect.

No Waiver. We can enforce any of our rights in this agreement even if we delay in doing so.

Handling money. Our financial arrangements with most insurance companies are on a ‘risk transfer’ basis. This means that we act as agents of the insurer in collecting and refunding premiums and your premium is deemed to be received by the insurer(s) at the point it is received by us. However, if risk transfer does not apply, any monies transferred to us will be held by us in a statutory trust account set up in accordance with FCA rules. Interest earned on monies held in such a statutory trust account will be retained by us.

Complaints. If you wish to make a complaint, please contact our complaints team at [email protected]. Our team will do their best to resolve your complaint, but if for any reason we are unable to help, and you are still unhappy within 6 months of receiving our final response, you may be able to refer your complaint to the Financial Ombudsman Service. We will not charge you for making a complaint and if you are not satisfied with the outcome you can still bring legal proceedings. For more information about Zego's complaints data click here.

Compensation. We are covered by the Financial Services Compensation Scheme (FSCS). If we are unable to meet our financial obligation to you, you may be eligible to recover compensation from this scheme. The amount of compensation recoverable will depend upon the type of insurance you have purchased. Please find further details of your FSCS entitlement here.

Governing Law and Jurisdiction. This agreement is governed by the laws of England and Wales. This means that any legal proceedings in respect of this agreement or our app should be started in the courts of England and Wales. However, if you live in:

Scotland, you may bring legal proceedings in either Scottish or English courts.
Northern Ireland, you may bring legal proceedings in either Northern Irish or English courts.

Our formal details. We are a limited company incorporated and registered in England and Wales. Our company number is 10128841 and our registered address is 7th Floor, Exchange House, 12 Primrose Street, London, Greater London, EC2A 2BQ. Our VAT number is 246076307.

The Financial Conduct Authority regulates companies like ours. Our Firm FCA reference number with the Financial Conduct Authority is 757871. Full details of our FCA registration and our permitted regulated activities/services can be found on the FCA website.

How do we protect your privacy?

Under data protection legislation, we are required to provide you with certain information including:

Who we are;
How and why we process your personal data; and
Your rights in relation to your personal data and how you can exercise them.

This information is set out in our Privacy Notice. Please make sure you have read our Privacy Notice and that you are comfortable with the information in it before using our app.