Hugo Insurance Review: Mobile-First Coverage

businessfield December 1, 2025 2:15 am

What is Hugo Insurance?

Hugo Insurance is a modern, mobile-first insurance provider designed for today’s flexible workforce. It specializes in pay-per-mile auto insurance, offering coverage that adapts to the driving patterns of rideshare drivers, delivery workers (like those for DoorDash, Uber Eats, Instacart), and other gig economy participants. Launched to bridge the gap between personal and commercial policies, Hugo aims to provide affordable, on-demand coverage that traditional insurers often don’t offer efficiently.

The core idea is simple: you pay a low monthly base rate plus a few cents for each mile you drive. This can lead to significant savings for those who drive less or have variable driving schedules.

Who Owns Hugo Insurance?

Hugo Insurance is a brand under Old American Indemnity Company, a licensed and admitted insurer founded in 1947 and based in Dallas, Texas. This provides Hugo with the backing of a longstanding, regulated insurance carrier while operating with a modern, tech-driven customer experience.

Coverage Options: What Does Hugo Insurance Cover?

Hugo offers customizable auto insurance policies primarily focused on the unique needs of independent contractors. Key coverages include:

Liability Coverage: Meets state-required minimums for bodily injury and property damage you may cause to others.
Comprehensive & Collision: Optional coverage for damage to your own vehicle from accidents, theft, vandalism, or weather.
Rideshare & Delivery Endorsements: This is Hugo’s specialty. They offer endorsements (add-ons) that fill the “coverage gap” that exists when you have the app on but haven’t yet accepted a ride/delivery. This period is typically not covered by personal policies.
Uninsured/Underinsured Motorist: Protects you if you’re in an accident with a driver who has no or insufficient insurance.
Pay-Per-Mile Billing: The flagship feature. You are billed based on actual miles driven, tracked via a mobile app or plug-in device.

How Much Does Hugo Insurance Cost?

Hugo Insurance costs are highly personalized, but they follow a two-part pricing model:

Monthly Base Rate: A fixed fee that covers your vehicle and coverage while parked. This varies by driver profile (location, age, vehicle, driving history).
Per-Mile Rate: A variable fee (e.g., 5 to 10 cents per mile) for every mile you drive.

Example Estimated Cost:

Base Rate: $45/month
Miles Driven: 600 miles
Per-Mile Rate: $0.07/mile
Total Monthly Cost: $45 + (600 * $0.07) = $87

This model makes Hugo exceptionally cost-effective for low-mileage drivers (under ~10,000 miles per year) and those who only drive for gig work part-time.

Hugo Insurance Reviews: Pros and Cons

Based on customer feedback and expert analysis:

Pros (Advantages):

Savings for Low-Mileage Drivers: Potential for 20-40% savings compared to standard fixed-rate policies.
Built for Gig Work: Seamless, no-hassle rideshare/delivery endorsements.
Transparent Billing: Clear breakdown of base + mileage costs in the app.
Easy Digital Experience: Quotes, policy management, and claims are handled primarily through the mobile app.
Flexible Coverage: No long-term contracts; adjust coverage as your driving needs change.

Cons (Disadvantages):

Not Available Everywhere: Currently licensed in a limited number of states (check their website for availability).
Privacy Concerns: Requires mileage tracking via app or device.
Potentially Costly for High-Mileage Drivers: If you drive full-time or over 15,000 miles/year, a traditional policy may be cheaper.
Limited Insurance Products: Focus is primarily on auto; no bundled home or life insurance offers.

Customer Review Sentiment: Users praise the savings and convenience but occasionally note that customer service response times can vary during peak hours.

How Does Hugo Pay-Per-Mile Insurance Work?

Get a Quote: Enter your info on the Hugo website or app for an instant quote.
Choose Your Coverage: Select your liability limits and add-ons (comprehensive, collision, rideshare endorsement).
Install the Tracker: Download the Hugo app, which uses your phone’s location (or a plug-in OBD-II device) to track driving miles only. It does not track speed, location history, or driving behavior for pricing.
Drive & Get Billed: Pay your monthly base rate plus your per-mile charge. You can view detailed mileage logs and billing in the app.

Who is Hugo Insurance Best For? (Target Audience)

Hugo is an ideal fit for:

Part-Time Rideshare Drivers (Uber, Lyft)
Food & Grocery Delivery Drivers (DoorDash, Grubhub, Instacart)
Low-Mileage Commuters who work from home frequently.
Urban Dwellers who use public transit but own a car for occasional use.
Freelancers & Independent Contractors who use their vehicle for business sporadically.

Who Should Look Elsewhere?

Full-time delivery/rideshare drivers covering very high mileage.
Drivers who are uncomfortable with any form of mileage tracking.
Those seeking a full-service, traditional agent-based insurance experience.

The Bottom Line: Is Hugo Insurance Worth It?

Yes, for its specific target market. Hugo Insurance successfully solves a real problem for on-demand workers by providing affordable, flexible, and relevant coverage. Its pay-per-mile model is a genuine innovation that can lead to substantial savings.

Final Recommendation: If you are a gig worker or a low-mileage driver in a state where Hugo operates, getting a quote is a no-brainer. Compare their final price (including the rideshare endorsement) with your current policy and other gig-economy specialists like Root, Allstate, or Progressive’s Snapshot to see if the savings justify the switch. For the right driver, Hugo offers a modern, cost-effective insurance solution that traditional companies struggle to match.

Ready to See Your Potential Savings? Visit the official Hugo Insurance website for a personalized quote.

Frequently Asked Questions (FAQs)

Q: Is Hugo Insurance legitimate and trustworthy?
A: Yes. Hugo is a brand of Old American Indemnity Company, a licensed insurer with an A- (Excellent) financial strength rating from A.M. Best.

Q: Does Hugo insurance cover Uber and Lyft?
A: Yes, specifically. You must add their “Rideshare Endorsement” to your policy, which provides coverage during Period 1 (app on, no ride accepted) – the critical gap most personal policies exclude.

Q: How does Hugo track my miles?
A: Primarily through its mobile app using location services. It only records miles driven, not specific routes, driving habits, or speed.

Q: What states is Hugo Insurance available in?
A: Availability is expanding. As of 2024, it operates in several states including Texas, Illinois, Ohio, and others. Check their official website for the most current state list.

Q: Can I cancel my Hugo policy anytime?
A: Yes, there are no long-term contracts. You can cancel at any time, typically with a short advance notice.