This telematics based system will give new Ontario, Canada motorists the chance to prove their safety habits.
A company called Ingenie Canada Inc. has now announced that it will be offering a usage based insurance program in Ontario, Canada, that will use telematics technology in order to allow drivers who are aged 24 years and younger to show that their habits are safer than the demographic as a whole.
The company is allowing younger drivers to show their true risk level instead of being lumped in with the group.
The idea behind this usage based insurance program is that younger drivers are inherently faced with very high premiums for their policies. As newer drivers present insurers with a higher level of risk, they must also face rates that are considerably higher than their older counterparts. The problem with this method of insurance premiums calculation is that not all younger drivers are created equal. There are some that drive much more safely and much less frequently than others, resulting in a notably lower risk that is not necessarily reflected in the amount that they are paying.
The usage based insurance program allows these young drivers to show that they are worth charging less.
The customers in this auto insurance program are provided with feedback every 10 days by way of the Ingenie Canada website or through a mobile app (as per the choice of the user). That way, the habits and associated risk of the driver can be monitored and steps can be taken to decrease the associated risk of that motorist and, therefore, potentially reduce premiums.
The policies for this car insurance are being underwritten by Pilot Insurance company of Aviva Canada), and it is being “rolled out to brokerages across Ontario”, said Ingenie. The telematics product is sold directly through the official website for the company.
The feedback provided through this usage based insurance product will include a driving score for the driver, on a scale of 100. It will also offer driving improvement tips and shows whether or not they are on the right track for reduced premiums through the “Good Driving Discount,” said Ingenie.