Connected Vehicle Insurance Blog
We spoke with Aparajithan Rajendran, Solutions Architect, Next Generation Telematics at Honda to hear his thoughts on operationalizing data to increase tactical level solutions, establishing a UBI program, the future of car insurance, and much more.
Through recent years, the emergence of connected vehicles has allowed increasingly vast amounts of data to be gathered and processed. Vehicles equipped with an array of sensors and cameras generate data about how they are used, where they are on the road, the surrounding environment, and the operating status of a variety of systems and components.
Connected cars have been around for almost half a decade and it is just recently that connected car insurance has come to surface. Connected vehicle insurance is a technology-based vehicle insurance where premiums are derived from a driver's driving pattern, allowing drivers to be rewarded for good driving behavior.
By implementing UBI, insurance companies will now have a competitive advantage when selling/providing their insurance because prices will now be user/driver specific. Usage-based insurance allows companies to charge drivers based on actual risk instead of perceived risk and ultimately, provides them with a more user specific type of insurance.