You’ve reaped the benefits associated with the Internet of Things (IoT), whether it is in home automation or access to information, but the changes have only started. Apply connectivity to everything – and you’ll see your world improve. One aspect of your life where the IoT can translate into money savings is with your driving habits.
With connected sensors, insurance companies now offer personalised insurance products and discounts to good drivers. To you, this translates to the options of usage-based insurance, checking your vehicle’s safety, and rewarding you for good driver habits.
Insurance Companies Offering Affordable Premiums
The mobile telematics allows
Good prices for good drivers.
One major insurance company offers a piece of equipment you add to your vehicle and this device tracks driving habits. If the driver has good habits, they qualify for a lower premium that remains effective with good car movements. Sensors have the ability to track acceleration, speed, braking, and metrics about driving patterns.
Decreased premiums for usage-based pricing.
It is estimated that by 2020, over 50 million drivers in the United States will try usage-based insurance. If you use a sensor on your car, you may qualify for lower rates because you actually drive less than other users. Metromile offers a pay-per-mile insurance policy for low-usage drivers.
Quote Customisation and Services for Your Needs
If the driver is willing to give permission for tracking, insurance companies offer quote customisation and services based on individual driving habits. For example, Jooycar (primarily serving Latin America) uses a telematics device to let drivers know if their vehicle needs repair.
Information about drivers in your zip code, access to your car’s analytics, and general diagnostics actually improve the insurance experience for all drivers. Some of the other personalised services are:
- Rewards for changing driving habits
- Discounts for servicing your vehicle
- An improved claims process
- Traffic insights from others in your area
- Personalised notifications, rewards, and discounts from the insurer
- Decreasing theft
Data Helps the Driver
As a driver, access to information about your individual habits leads to major improvements in how you drive. For example, a connected device can text you or send your vehicle a notification that you brake too quickly at a set speed range. There is room for every driver, even one without tickets or accidents, to boost his or her skills.
This is also great for the young drivers in your family and it also gives parents peace of mind about their children’s driving habits.
Auto Insurance Can Make People’s Lives Better
Expect the IoT to change insurance and grow in its advanced status even within the next year. Insurers are sure to make use of individual and group data, so the better drivers will get a solid price. Expect to see vehicles at every price point to come off the production line to be already equipped with telematics.
At Raxel, we see the potential in data’s ability to improve lives and impact driving for the better. We use cutting-edge telematics to help the individual driver see where he or she needs to improve. Our products track habits, make recommendations, and track progress. Our team has worked with forward-thinking companies including Liberty Mutual to BNP Paribas to Alfa Insurance.
Are you thinking ahead? Shoot me a message and let’s chat!
