Insurer gets digital to offer insurance premium based on individual driving behaviour
A car insurance firm has taken a logical step forward by setting its insurance premiums based on how safe its customers drive.
Insurethebox, which targets young drivers, is using a business analytics appliance to study and evaluate its customers driving in attempt to promote safer driving thus reducing both road traffic accidents and insurance premiums.
The news comes as the personal injury industry is facing significant changes after whiplash claims, in particular, are being blamed for the rising cost of insurance premiums.
The firm places a telematics device under the customer’s dashboard which connects to a GPS and other sensors. This then captures the driving behaviours including how, where, when and for what length of time, the car is being driven.
Mike Brockman, CEO of insurethebox, explains how it works:
“Our customers purchase an annual 6000 mile insurance policy that can be topped up if they run out of miles.
“Customers who drive well at responsible speeds and who take breaks on long trips can earn extra miles and apply them to their policies.”
Content correct at time of publication