Editors’ take: Hugo auto insurance could be a good option if you drive sporadically and don’t need full coverage. With Hugo’s on-demand car insurance model, you can activate your insurance when you need it and turn it off when you don’t. But Hugo isn’t available everywhere. If you’re interested in robust discount opportunities and extensive coverage options, you may be better off getting full coverage from a more seasoned insurance company.
Hugo auto insurance at a glance
| Availability | Not available in most states |
| J.D. Power customer satisfaction ratings | Not listed |
| How to get an insurance quote | Online |
| How to submit a claim | Through a claims specialist |
Pros
- Pay-as-you-go insurance model
- No down payments
- “Instant” proof of insurance
Cons
- Not available everywhere
- Coverage options are limited
What you need to know about Hugo auto insurance
A newcomer to the car insurance scene, Hugo stands out for its innovative and flexible “micropayment” model. The company claims to offer on-demand insurance that drivers can turn on while driving and turn off when they’re not. According to the company, customers don’t have to pay hidden fees or down payments — though they do have to start with at least three days’ worth of coverage — and can get proof of insurance in under six minutes.
Pay-as-you-go insurance model
One of the things that makes Hugo unique is its pay-as-you-go insurance model. Customers deposit money into their accounts which is then used to cover the cost of their “as needed” car insurance. They can turn on their coverage for days, weeks or months at a time, pay a flat per-day rate while their insurance is “on,” and turn off their car insurance so they aren’t paying on days they don’t drive.
Not available in every state
Hugo isn’t available in most states, so you’ll need to check on the insurer’s website to see if it’s offered where you live.
May be different to get customer service
Hugo doesn’t appear to have a mobile app, but customers can turn on or off their coverage via text message or the Hugo website. Customers can also manage their policies through their online accounts. But information on the Hugo website is sparse, and no agents or hotlines appear to be available for assistance.
Auto coverage offered by Hugo
Hugo’s coverage options also seem limited and may be best for drivers looking for state-minimum coverage on a car they don’t drive often. The company offers three policy options: Flex, Unlimited Basic and Unlimited Full.
None of Hugo’s coverage options currently includes towing or roadside assistance.
Flex Plan
The Flex option offers liability coverage that meets state requirements and might be best for drivers who don’t drive every day. It’s a pay-per-day liability policy that allows customers to buy three, seven, 14 or 30 days to begin. It allows you to turn off your policy for days you won’t be driving.
Basic Plan
Basic also offers liability coverage that meets state requirements and includes medical and accidental death coverage. Basic is geared toward drivers who drive more often and offers a six-month policy option.
Unlimited Full Plan
The Unlimited Full plan offers what Hugo calls full coverage — which includes collision, comprehensive and liability insurance — and is probably best suited for drivers who drive their car frequently. Unlimited Full coverage also includes medical coverage, accidental death coverage and rental car insurance.
Unlimited Full is the only Hugo policy that covers your vehicle and passengers and comes with the added perk of same-day claims pay. Like the Flex and Unlimited plans, Hugo advertises no upfront fees for Unlimited Full.
Auto insurance discounts offered by Hugo
Hugo doesn’t offer much information about potential car insurance discounts. Still, its focus on pay-as-you-go coverage could save drivers money if they don’t drive often or require full coverage. The company does claim to offer cash rewards for each coverage tier.
FAQs about Hugo auto insurance
Hugo doesn’t appear to offer nonstandard insurance for high-risk drivers, and it doesn’t offer SR-22 certificates.
Hugo is an insurance tech start-up backed by venture capital funds, Founders Fund and Canaan. It currently partners with First Acceptance for insurance underwriting.
Hugo began its unique model with a beta version of its Flex coverage in Illinois in August 2020.