Tag: mileage based insurance

Telematics – A new business model

Rose Stuart
Telematics Usage based auto insurance

Much has been written about the pros and cons of using telematics… and many insurers have made a business case for implementing usage-based insurance in the auto industry. However, the challenge often ignored is how to store and analyze this explosion of data created by these activities. First of all, let’s consider the amount of data automotive telematics devices are expected to generate. Every second a telematics device will produce a data record. This data record will include information such as date, time, speed, longitude, latitude, acceleration or deceleration (g-force),…

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Some drivers may save on auto coverage with “pay-by-the-mile” insurance

Marc

A new form of auto coverage, called “pay-by-the-mile” insurance has now been designed to help people to save money on their premiums and to encourage them to drive less and use public transportation more regularly. The way that the coverage works is that drivers who put fewer miles on their vehicles will pay a lower rate for their insurance every month. It places a direct link between their vehicle’s mileage and their insurance plan. The plan is based on an average annual driving distance of 19,000 miles. Though it does…

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European automobile insurance companies may begin using black boxes to establish rates

Car insurance companies in Europe that are looking for a way to work around the ban in Europe on charging different rates to male and female drivers are considering innovative new technology using black boxes that may completely change the way that auto insurance premiums are calculated. The largest automobile insurer in the United Kingdom, the Royal Bank of Scotland, is one of the companies currently investigating and testing the use of this technology, which uses a small device to monitor the way that customers use their vehicles so that…

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Hartford to test a new form of car policy in 2012

Julie Campbell

Hartford Financial Services Group has announced its intentions to begin a pilot program in 2012 for an auto insurance policy based on telematics. Hartford’s president of consumer markets, Andy Napoli made the announcement during the company’s investors meeting. The new policy will be using telematics. According to Napoli, using the “devices in insured vehicles to transmit information about driving behavior, such as miles driven, speed, acceleration, deceleration, and using that information to price the risk.” This pilot program will be known as TrueLane and will begin in the first half…

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Auto insurance based on mileage, IntelliDrive, can offer greater savings to drivers

Recent data has been suggesting that a growing number of consumers are attempting to save money by reducing the amount of driving that they’re doing. Though the main reason for this is to decrease the amount of gas that is used, and lower the amount of maintenance needed on the vehicle, Travelers is now offering another incentive to customers to keep their mileage down. The new IntelliDrive insurance product rewards low-mileage drivers with discounts of up to 5 percent at the time of enrollment, and an additional discount of up…

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