A new UBI solution has now been launched by a partnership between Telefónica and Generali Seguros.
Drivers in Spain will now have the opportunity to take advantage of considerable savings based on their good and safe driving habits, if they choose to participate in a new usage based insurance program.
The new product, which was just unveiled, is advertised as being able to save drivers up to 40 percent.
The usage based insurance policy would require the drivers to have a device installed into their vehicles which would use Machine to Machine (M2M) technology to transmit data that it has gathered about the driver’s unique driving habits and behaviors on the road. This type of policy is starting to pop up in countries all over the world, including the United States.
The new usage based insurance product is being called “Pago como conduzco” and is geared toward all drivers.
This usage based insurance program is the result of a joint effort by Telefónica and Generali Seguros. It will use technology to better understand the driver’s habits and will adjust the premiums for that customer based on that data. They are advertising that it can help safe drivers to save up to 40 percent per year on their premiums for auto coverage, when compared to a traditional policy.
Carlos Morales, the global managing director for Telefónica Digital M2M and cloud computing, and Jaime Anchústgui, the Generali España CEO, made the unveiling of the new usage based insurance program together. They were both very enthusiastic and expressed strong belief in the potential of the product.
They explained that this UBI policy will calculate premiums according to several different types of factors. This will include the distance driven, when the driving occurs, the amount of driving done in cities or between cities, whether or not the driver exceeds the speed limit regularly, the amount of accelerating and hard breaking, and other factors.
All of this data is collected by a little device designed specifically for usage based insurance purposes. Though these are growing in popularity, there has been some opposition in the countries where they already exist, as people have raised privacy and security concerns.