TomTom has just announced that it has made a groundbreaking new partnership in the insurance market with the Motaquote insurance broker, by agreeing to provide the technology to support a new behavior-based insurance product that uses the driver’s habits to help gauge the premiums.
The product being offered by Motaquote is called Fair Pay Insurance, and it will use TomTom technology to be able to reward drivers with lower risk habits by decreasing the premiums that they pay.
According to the managing director of TomTom business solutions, Thomas Schmidt, “Our entry in the insurance market with our proven fleet management technology puts us at the forefront of a move that could help to revolutionize the motor insurance industry.”
Schmidt went on to explain that they provide a unique range of various telematics, traffic information, and navigation data, which broadens the opportunities for insurance companies to encourage safer, more eco-friendly driving, and to develop a cutting edge insurance product portfolio. He went on to say that his company is “delighted” to have received Motaquote’s recognition into the potential of this type of innovative new offering.
The Fair Pay Insurance program provides drivers with direct control over the premiums they will pay for their coverage, by using the driver’s behaviors behind the wheel as a risk gauge, as opposed to more traditional considerations such as vehicle type, age, gender, and geographical area.
Managing director of Fair Pay Insurance, Nigel Lombard explained that they are pushing aside the customer generalizations and are allowing customers to prove that they are good drivers so that they can receive benefit from those behaviors.
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