What is Connected Insurance?
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. This usage-based insurance, also known as pay as you drive or pay how you drive, is offered by insurance companies and it works by providing the driver with a device that can be plugged into their vehicle's agnostic system. The other way that insurance companies can get information about a driver's driving pattern is though the usage of a mobile app, though this is not the most reliable way to track information. Alternatively, driving patterns can be tracked through cars already equipped with OEM connected car systems.
Connected car insurance doesn't rely on age, gender, location, or marital status. Usage-based insurance (UBI) tracks a variety of factors such as mile-measured against time, distance, driving behavior, and place. This type of insurance allows drivers to get rewarded for good driving.
Some pieces of information that have to be collected in order to deliver the most reasonable premiums possible include:
- Hard acceleration or braking
- Distance traveled
- Time of day driven
- and more
Learn how connected vehicle insurance is going to change the automotive landscape at the Connected Vehicle Insurance Summit!