Hugo Insurance Exchange
Each year, an estimate 50 to 80 million drivers risk fines, suspension, and accidents by sometimes driving without insurance. We created Hugo’s “pay at your pace”, no downpayment1, no hidden fee2 features to make coverage affordable and sustainable for every driver. This brings us closer to our goal of making financial stability achievable for every American.
To increase our reach to every driver, we work with major insurers like First Acceptance, and new insurers like Hugo Insurance Exchange.
Hugo Insurance Exchange (”HEX”) is a reciprocal insurance company founded in 2024 and managed by Hugo Insurance Services LLC. It is entirely owned by its policyholders: each HEX policyholder owns a part of HEX. This makes sure that policyholders’ interests are served. Policyholder interests are also represented by the HEX Subscribers’ Advisory Committee.
What’s a Reciprocal Insurance Company?
Most insurance companies are owned by investors and pay substantial salaries to their executives - money that could go to paying claims, lowering prices, or supporting new policyholders. Reciprocals, on the other hand, are owned by their policyholders and pay a manager (called an “Attorney in Fact”) to run operations for a simple flat fee. The rest of the money goes towards paying claims and supporting new policyholders.
What’s the Subscribers’ Advisory Committee?
The Subscribers’ Advisory Committee exists to represent HEX’s policyholders’ / owners’ (”subscribers”) interests. The Committee rules are here. The Committee is currently chaired by John Finston, who has decades of experience representing the interests of consumers, including serving as General Counsel to the California Department of Insurance.
How do I know if my policy is with First Acceptance or Hugo Insurance Exchange?
The documents you signed when you bought your policy (your bind packet) will say clearly whether the policy is with First Acceptance, Hugo Insurance Exchange (HEX), or another insurer. HEX policy numbers will also always start with “HEX”.
What is the Subscriber Contribution?
The Subscriber Contribution - typically 10% of premium - is part of the price you pay as a Hugo Insurance Exchange (HEX) policyholder and owner. You can think of it both as a member’s fee and as part of your premium payment. It makes sure that HEX can provide all the value-added services that make Hugo different and that HEX can grow to provide coverage for as many folks as need and qualify for it. You can find your Subscriber Contribution listed in your Subscriber Agreement, which is part of the documents you signed when you bought your policy (your bind packet).