The insurance industry has been changing rapidly as insurtech startups challenge traditional models with automation, flexible pricing, and data-driven underwriting. Nowhere has this disruption been more visible than in vehicle fleet insurance, where businesses demand cost efficiency, on-demand coverage, and faster claims handling. One company that captured attention in this space was Lula Insurance.
Initially known for its innovative approach to commercial auto insurance, Lula promised flexibility for trucking fleets, car-sharing platforms, and rental operators. Over time, however, the company underwent a significant transformation—shifting away from providing insurance altogether and repositioning itself as an AI-driven technology company.
This article explains Lula’s full journey, from its founding story and original insurance products to the challenges that led to its pivot. You’ll learn what Lula offered, what changed, and what the company does today. It also covers customer reviews, alternatives for fleet and trucking insurance, and guidance for former policyholders. If you’re researching coverage options, reviews, or alternatives, this guide will help you understand whether Lula—or what replaced it—fits your needs.
What is Lula Insurance? Company Overview
Company Background
Lula was founded in 2020 in Miami by twin brothers Michael and Matthew Vega-Sanz. The company didn’t start as an insurance provider. Its original product, Lula Rides, was a college-focused car-sharing app designed to help students rent vehicles more easily. While building that platform, the founders encountered major insurance barriers, which sparked a pivot toward insurance infrastructure.
The startup attracted strong investor interest, raising approximately $60 million in funding. This included an $18 million Series A and a $35.5 million Series B. High-profile investors such as Khosla Ventures, NextView Ventures, Founders Fund, Bill Ackman, and Steve Pagliuca backed the company, signaling confidence in its technology-first vision.
Business Evolution
Lula initially focused on API-based insurance solutions for car-sharing and rental platforms. Over time, it expanded into trucking, logistics, and fleet insurance. Its most notable innovation was episodic or pay-per-day insurance for commercial fleets.
In 2024, the company completed a major transformation. It divested its insurance operations and repositioned itself as an AI technology company. Today, Lula Insurance no longer operates as an insurer and instead focuses on its AI platform, GAIL.
Lula’s Insurance Products and Services
| Category | Description | Key Features / Details |
|---|---|---|
| Historical Insurance Offerings | Commercial auto insurance for modern mobility businesses | Fleet insurance for trucking companies, coverage for car-sharing platforms, Turo hosts, rental operators, claims management, and risk monitoring tools |
| Pay-Per-Day Insurance Model | Episodic insurance for trucking fleets | Base fee ~$250/month + $40–$50/day per truck; targets small fleets (5–7 trucks) operating <5 days/week; claimed 15–20% cost savings; ELD integration enables automatic coverage activation |
| Off-Rental Programs | Coverage for vehicles when not actively rented | Partnership with CarSync for Turo hosts ($79/month/vehicle); renter insurance via Bonzah; state-specific availability and coverage limitations |
| Platform Features | Technology and management tools | Policy administration, automated claims workflows, risk assessment via LulaSafe, machine learning on driver behavior and mileage; network access to multiple carriers |
The Business Challenges and Transformation
Insurance Operation Issues
Despite innovation, Lula faced operational difficulties. Loss ratios reportedly exceeded contractual thresholds with carrier partners such as Oxford. In late 2023, some clients experienced coverage disruptions. In May 2024, Turo’s host policies were canceled, creating uncertainty for customers.
Insurance operations were ultimately transferred to New Era Risk Solutions and Nantucket Capital Corp, marking Lula’s exit from underwriting and policy administration.
Company Restructuring
The company underwent a major downsizing, reducing staff from approximately 150 employees to fewer than 20. The Palo Alto office was closed, and operations were consolidated. Employee reviews reflected concerns about management direction, with a Glassdoor rating of around 2.3 out of 5.
Industry Context
These challenges reflect broader issues in insurtech. Operating as both an insurer and a technology provider in a hard insurance market proved difficult. Established carriers with deeper capital reserves and regulatory experience posed strong competition.
GAIL: Lula’s AI Pivot
What is GAIL?
GAIL, short for Generative AI Insurance Language, represents Lula’s strategic shift from insurance provision to AI-powered technology solutions. Unlike traditional insurance products, GAIL is designed exclusively for insurance agencies rather than consumers. The platform functions as a voice-activated AI assistant capable of handling complex insurance workflows. Remarkably, GAIL has reportedly passed insurance licensing exams in multiple states, including Florida, California, New York, and Texas, demonstrating its compliance with regulatory standards and its deep understanding of insurance operations.
GAIL Features and Benefits
GAIL automates key agency tasks, including inbound and outbound call handling, lead qualification, appointment scheduling, and routine customer service inquiries. Its multilingual support spans over 10 languages, making it accessible to diverse client bases. Integration with existing agency management systems allows GAIL to seamlessly operate alongside CRM platforms, policy administration software, and claims management tools. Agencies leveraging the platform have reported significant operational efficiency, with Lula claiming up to 70% reductions in sales and support costs. By automating repetitive tasks, GAIL frees staff to focus on higher-value activities, such as client retention and strategic growth.
Target Market Shift
Following the divestiture of its insurance operations, Lula now focuses entirely on marketing GAIL to insurance agencies. Enterprise clients have included franchises associated with Allstate, Farmers, and Travelers, reflecting growing interest in AI-driven solutions. The platform is offered on a subscription-based pricing model, making it scalable for agencies of different sizes. Recent seed funding led by Act One Ventures provides additional capital to expand GAIL’s capabilities and reach, further solidifying Lula’s transition from an insurtech insurer to a B2B AI technology company.
Lula Insurance Reviews and Customer Experience
Positive Feedback
During its operational period as an insurance provider, Lula received praise for its technology-driven platform. Many users appreciated the intuitive interface and streamlined policy management features, which simplified day-to-day insurance administration. Claims handling was generally noted as fast and efficient, reducing downtime for fleet operators. Trucking companies in particular valued the flexibility of pay-per-day insurance, which allowed them to insure trucks only when in use, potentially saving 15–20% compared to traditional annual policies. More recently, agencies testing GAIL, Lula’s AI-powered platform, have reported improvements in lead management, customer interactions, and 24/7 support automation, highlighting the platform’s potential for operational efficiency.
Negative Feedback and Concerns
Despite these advantages, negative sentiment arose primarily from sudden policy cancellations and limited communication during the company’s transition in 2023–2024. Turo hosts affected by the May 2024 policy cancellations expressed frustration on TrustPilot, noting difficulty in finding replacement coverage promptly. Some commercial clients also experienced coverage gaps during the divestiture process, creating uncertainty and compliance concerns.
Employee Perspective
Current and former employees have shared mixed reviews of Lula’s work environment. A Glassdoor rating of 2.3/5 reflects concerns about management decisions, strategic direction, and company stability. Compensation and benefits were rated moderately (3.3/5), but cultural challenges and uncertainty during restructuring were recurring themes. This feedback underscores the challenges Lula faced in balancing rapid growth, technology innovation, and insurance operations.
Alternatives to Lula Insurance
Since Lula no longer provides direct insurance coverage, businesses and vehicle owners must explore reliable alternatives based on their specific needs. Fortunately, several established insurers and specialty providers offer strong options across fleet, trucking, car-sharing, and rental segments.
For Fleet and Commercial Auto
Businesses operating delivery vehicles or service fleets can consider Progressive Commercial, The Hartford, and Hiscox, all of which offer scalable commercial auto policies with nationwide availability. Addify (formerly GetAddify) is another option, focusing on modern fleet insurance solutions. Traditional fleet insurers remain a solid choice for companies prioritizing stability, long-term underwriting, and broad claims support.
For Turo Hosts
Turo hosts may rely on Turo’s own protection plans, which are integrated directly into the platform. In some states, State Farm and GEICO commercial policies may provide suitable coverage with peer-to-peer endorsements. Roamly, where available, specializes in sharing-economy vehicle insurance and may offer flexible options for hosts.
For Trucking
Trucking companies often prefer established carriers such as Progressive Commercial Truck, National Interstate Insurance, Great West Casualty, and Canal Insurance Company. These providers understand regulatory requirements and specialize in trucking risks.
For Car Rental Operations
Larger rental operations typically work with carriers like ACE American, Zurich Insurance, and Liberty Mutual, or other commercial insurers offering rental endorsements tailored to high-liability environments.
Is Lula Insurance Right for You?
Lula no longer provides insurance coverage directly to businesses or individuals. Its insurance operations were transferred to New Era Risk Solutions, meaning any former customers should immediately verify who their current carrier is and confirm active policy details. Do not rely on past documentation without confirmation, as changes in underwriting and administration may affect coverage terms.
Today, Lula’s primary offering is GAIL, an AI-powered platform designed for insurance agencies. GAIL may be a strong fit for independent agencies looking to automate customer service, handle inbound and outbound calls, qualify leads, and offer 24/7 availability without expanding staff. Agencies comfortable with AI-driven interactions and digital workflows may see efficiency and cost benefits.
However, Lula is not suitable for businesses seeking direct fleet, trucking, car rental, or Turo host insurance. Companies that require stable, long-term insurance relationships or prefer well-established carriers should explore traditional commercial insurers or specialized brokers. Carefully evaluating your needs will help determine whether Lula’s current technology-focused model aligns with your goals.
How to Get Insurance Coverage (If You Were a Lula Customer)
If you previously held a policy through Lula, your first step should be contacting New Era Risk Solutions to confirm your current coverage status. Ask for written confirmation of your active carrier, policy number, effective dates, and any changes to terms or limits. Do not assume coverage is still in place without verification.
Avoid insurance lapses at all costs, as even short gaps can lead to higher premiums, fines, or license and registration issues. Review your state DMV requirements carefully, especially if you operate commercial vehicles or manage a fleet. Some states require immediate proof of continuous coverage to avoid penalties.
If coverage has ended or no longer meets your needs, consult an independent insurance broker. Brokers can compare multiple carriers and help you transition smoothly. For specialized risks—such as trucking, car rental, or peer-to-peer vehicle use—working with Managing General Agents (MGAs) can provide access to niche markets and tailored policies. Keeping documentation organized will help ensure uninterrupted compliance and protection.
Final Thoughts
Lula’s story highlights both the promise and challenges of insurtech innovation. What began as a flexible insurance provider evolved into a pure AI technology company. Today, lula insurance no longer underwrites policies, and GAIL represents its future as a B2B software platform.
For existing customers, verifying coverage is critical. For agencies, GAIL may offer operational efficiency. The broader lesson is clear: always research financial stability, carrier backing, and long-term viability before choosing an insurance provider. Contact the right provider based on your current needs—not past branding.
FAQs
-
Is Lula Insurance still operating?
Lula operates as an AI technology company and no longer provides insurance policies.
2. What happened to my Lula insurance policy?
Policies were transferred to New Era Risk Solutions and related entities.
3. How is GAIL different from Lula’s insurance products?
GAIL is software for agencies, not an insurance coverage provider.
4. Is GAIL worth it for insurance agencies?
Some agencies report cost savings, but results vary by use case.
5. Can I still get pay-per-day trucking insurance?
Episodic coverage exists, but availability depends on carriers and state rules.
