Using M2M to insure the driving more than the car
Telefónica and European insurance company, Generali Seguros, have launched “Pago como conduzco” in Spain, a motor insurance policy that calculates the premium according to driving habits. The companies claim it will especially benefit younger drivers with good driving habits and may enable them to get up to 40 per cent off their premiums (younger drivers with bad boy driving habits will presumably see their premiums go in the opposite direction).
The project is 50/50 joint venture between Generali Seguros and the Telefónica Group's own Telefónica Seguros, which will act as joint insurer.
The M2M device is connected to the car analytics port and reports back to a central database and installation is done in connction with a Spanish car service network. Generali Segurosa claims the data is stored in a totally anonymous and secure cloud-based data management service.
Policy holders will be able to review their driving scores to see how they can improve them through changes in behaviour through either a mobile app (iOS, Android) or a website offering access to in-depth information on journeys made and their driver profile.
There is clearly more than a slight 'Big Brother' (Big Driving Instructor?) aspect to all this of course. The system returns data on driver speed (and whether speed limits are being broken) how fast drivers accelerate and whether they brake too suddently, and the idea won't appeal to everyone, no matter how much money they might (or not) save.
But the policy doesn't just rely on the driving behaviour, say the companies. Other factors include driver kilometres, the times of day the car is driven and in what areas (city driving, rural, motorway).
On taking out the policy, the premium is worked out according to the usual parameters and is adjusted on the basis of the replies given by the insured regarding their driving habits which go to make up their driver profile. The resulting premium is paid through an initial 50 per cent downpayment and the remaining 50 per cent by means of 11 adjustable (depending on driving habits) monthly instalments.