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20 Mar 17 06:12

User Based Insurance Or Pay As You Drive
The insurance sphere has always been high on innovation and lateral thinking. After all, insurance (especially in third world and developing countries, like India) isn’t considered an absolute necessity, thus, insurers must constantly evolve their product to attract the right attention. In the same vein, the concept of ‘Usage Based Insurance’ is gaining prominence in the sphere of car insurance.

Usage Based Insurance is all about calculating the applicable insurance premium depending on the vehicle owner’s driving habits. It’s essentially the ‘Pay As You Drive’ model, wherein your usage of the vehicle decides the quantum of insurance premium payable. Expounding,The vehicle’s odometer reading is the primary decider of the applicable coverage. Coverage is also dependent on the location based data- as gleaned from GPS, Smartphone App and/or any authorized tracking device installed on your car that provides real time information on the overall car usage minutes. Other information collected from the car, including vehicle’s average speed, distance travelled, time taken per trip, etc., also contributes towards the vehicle’s coverage.

What is the role of ‘Telematics’ in this insurance format?
Broadly speaking, Telematics refers to the whole range of technologies and implements that send, receive and store information to and from any moving vehicle. A simple GPS device, a plug-and-play device for your dashboard, or maybe a tracking app on your smartphone, any of these implements is central to the concept of telematics usage based insurance.

How does this ‘spying’ impact my car insurance profile?
Usage Based Insurance, and the methods used to make it happen, can be deemed as ‘good spying’, where the data collected isn’t utilized in any marketing stunt, but rather, to evaluate your abilities as a driver. If you are a disciplined driver, your premium amounts are bound to be less. Hence, you will be solely responsible to assign your own premium amounts, without having to comply with a common rule that applies to a larger demographic. Stop paying for the irresponsible mistakes of others!

Well, I have a feeling like it is not for me. Being a disciplined driver is usually a hard task, Is it beneficial for you? Let us know in the comments :)
 


Category: Other


2 Comments

Alicia Montoya - 22 Mar 2017, 6:50 a.m.

Funny, for me telematics is not at all about spying and all about enabling connected products and services that make my life healthier, safer, more sustainable... better.

Think about it: What if, via your data, you could be offered tips on better life choices, offers for products and services that meet your specific needs.. and yes, only pay for what you use. Why do you feel like it's not for you?

To me, telematics (and any data-driven service) is all about personalising services, just like Amazon does when you search and buy products, just like Google does when you search anything. Do you use Amazon and Google? I'd be interested to hear your thoughts on how you see that usage of your data.

In summary, I'm happy for companies to use my data if:
1) They use it to improve the products and services they offer me
2) They have a transparent data policy that looks after my data privacy (lots of work still needed here!!!)
3) They don't sell on my data to third parties without even asking me.

What about you?

Waldemar Razik - 6 Apr 2017, 10:06 a.m.

Sharing data is ok, if it is fair.

I would like to see the same amount of detailed data on performance of some organizations before I invest my money or purchase an insurance policy. Simply speaking sharing is good if I can make profit out of it.


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