The Ultimate Guide to On-Demand Insurance

Have you heard about on-demand insurance? It’s a new option for many people to protect important things in life—while saving money.

The insurance industry has been undergoing a major transformation. Quiet, yes—but quite significant.

The demand for more flexible and personalized solutions has led to the growth of a new model: on-demand insurance.

But what exactly does that mean? How does it work in practice? And is it really worth it for you?

Get to know this type of insurance! Photo by Freepik.

In this complete guide, we’ll explore everything you need to know about this topic.

What is on-demand insurance?

On-demand insurance is a type of coverage that you can activate and deactivate whenever you want—usually through an app or digital platform.

Unlike traditional insurance, it doesn’t require annual contracts or fixed monthly payments, especially when you’re not even using the coverage.

This model was created to meet the needs of a generation of consumers who value autonomy and fewer strings attached.

How does on-demand insurance work?

The details of the policy will depend on the company, of course. But in most cases, the flow is quite similar.

You download an app, choose the type of coverage you need (usually for specific items or situations), set the period of use, and activate the insurance with just one click.

Once you no longer need the protection, just deactivate it—usually with no extra fees involved.

What are the most common types of on-demand insurance?

In the U.S., the market has been developing several popular formats, like electronics insurance, which covers smartphones, laptops, cameras, and other gadgets. It’s especially useful for content creators.

Bike insurance is common in cities like San Francisco and Seattle. Car insurance by usage works well for those who drive occasionally, with apps like Metromile.

There are also solid options for travel insurance, which is typically temporary anyway, and freelancer insurance, offering professional liability coverage for a specific project.

Advantages of on-demand insurance

Total flexibility
You choose when to activate and deactivate your coverage, adjusting it to your lifestyle.
Cost savings
By paying only for the time you use, you can save a lot compared to traditional insurance.
Easy to sign up
Everything is done online in just a few minutes. No paperwork, no red tape.
Personalized coverage
You only pay for what you need—no unnecessary protections.
Technology on your side
Most platforms offer a fully digital experience, with notifications, usage history, and in-app support.

Disadvantages and limitations

Limited coverage
On-demand insurance doesn’t always cover as much as traditional plans. Read the fine print to make sure you’re truly protected.
Not ideal for constant use
If you need continuous protection, a traditional policy may be cheaper in the long run, especially with regular use.
Tech dependency
Without a smartphone or internet access, you may not be able to use the service. Also, many traditional insurers don’t offer this model, making it harder to find the right option.
May require more proof when filing claims
Because the coverage is sporadic, some insurers might ask for more documentation when you file a claim, making the process more complicated.

Top companies offering on-demand insurance in the U.S.

Here are some of the best-known companies in the U.S. offering on-demand insurance:

Lemonade—Popular for renters and homeowners insurance, with short-term options as well.
Trov—Focused on hourly/daily coverage for gadgets and electronic equipment, with solid protection plans.
Metromile—Offers car insurance based on the number of miles you drive.
Slice—Tailored for independent professionals and Airbnb hosts.
Verifly (now Thimble)—Specializes in hourly coverage for freelancers, especially in fields like photography, events, and marketing.