How does my location affect my monthly payment?
At Laka, your monthly contribution is dynamic. Unlike traditional insurance, where you pay a fixed premium regardless of what happens, your Laka "share" is based on the actual cost of claims within the Collective.
How is my Laka monthly cap calculated?
To keep things fair for the collective, Laka takes into account where you live and the type of coverage you have chosen. Your individual monthly cap (the maximum you could be charged in a month) is influenced by:
Your Location: Generally, members living in London or high-density urban areas are exposed to a higher risk of theft or accidents. As a result, your monthly cap may be slightly higher than those living in rural locations.
Your Insured Value: The total replacement value of the bicycles and gear you have covered.
Your Cover Level: Whether you have chosen Core or Complete cover, and if you have our Race and Travel add-on activated.
How does the Laka Collective model impact my bill?
The most important thing to remember is that your actual monthly contribution is calculated based on the cost of claims submitted by the entire Collective for the previous month.
Our model is designed so that if the Collective takes good care of their gear and there are fewer claims, everyone pays less. This remains true regardless of your individual location; when the collective wins, you win. Even if you have a higher monthly cap due to living in a city, your actual payment will drop if the total cost of claims is low.