What type of drivers are best suited for “pay as you drive” schemes?
Insurance telematics is gradually growing more popular and coming to the attention of drivers. It is steadily attracting younger tech-savvy and innovation-oriented drivers, but not only. In fact, insurance telematics provides benefits for all drivers.
“Pay per use” or “pay as you drive” models provide significant savings over traditional costs, as well as a wide range of extremely useful added value services such as emergency alerts and stolen vehicle recovery services.
So, what types of drivers are best suited for “pay as you drive” schemes?
Young & Inexperienced
Drivers in the 17-24 age category pay the highest premiums. In fact, the Association of British Insurers reports that drivers in this age group are three times more likely than other drivers to be involved in car accidents. Similarly, individuals who have recently passed their driving test are also considered a high-risk category by insurers.
Black-box-based telematics insurance schemes allow insurers to custom-tailor policies to individual driving habits and style rather than basing them merely on statistics.
Don’t Drive Much
If you aren’t behind the wheel very often, it can be harrowing to pay as much for insurance as a travelling salesman!
In fact, Fabio Sbianchi, CEO and Founder of Octo Telematics, began to dream about a car insurance that was custom-tailored to drivers’ habits after having to pay an expensive insurance bill for his wife’s car that had not been used for two years!
Telematics insurance policies allow drivers to select a mileage limit for their premium. Drivers who do not exceed this quota have no further worries; otherwise, all they need to do is simply “top up their insurance” with extra mileage bundles.
Careful & Slow
Drivers who are particularly careful and safe can also reap great savings from telematics insurance policies. In fact, drivers who steadily respect speed limits and other road safety indications, who don’t brake suddenly and who have a relaxed and secure driving style are sure to be rewarded by custom-tailored insurance policies and black boxes that monitor driver behaviour.
Daytime Drivers
Driving at night is also considered risky. Drivers who spend most of the time on the road during daylight hours stand to save with a telematics insurance policy.
Options and Services
Drivers who love innovation, technology and cutting-edge services are also ideal insurance telematics clients. Typical value-added services include emergency alerts in case of accidents, stolen vehicle recovery geo-location systems in case of theft and a wide range of other “connected car” services.
Insurance telematics continues to expand and develop new services and options that are transforming independent vehicles into connected cars. Octo works to transfer the full potential of telematics to the insurance sector, expand the range of automotive insurance products, and provide innovative products and services that will satisfy the growing request for consumer safety. And data from a wide range of different sources consistently shows that drivers – and not only younger drivers – are less likely to be involved in accidents if they are using a telematics-based insurance policy.
For further information:
- The Promise of Insurance Telematics
- Are Drivers Ready for Connected Cars?