Successor of pay as you drive, the pay how you drive or “connected car insurance” is attracting more and more car policyholders in France.
Why do insurers offer a connected auto insurance contract?
Auto insurance is based on the risk calculation that the driver makes run to the insurer. The higher the risk, the higher the premium.
Traditionally, to calculate this risk, the insurer uses both:
- the car features are insured (power = risk of accident, age = risk of breakdown, value = risk of theft, etc.) and its use;
- the profile and the background of the insured as a driver (duration of the driving license and insurance, presence of claims responsible or not, age, profession, etc.).
This calculation is therefore based on frozen dataprovided at the time of subscription by the insured, and not on real and updated data, reflecting the true conduct of the insured. This is where the principle of connected insurance comes in, which should allow the insurer toconsiderably refine their analysis of driving of an insured, and therefore the calculation of the price of his car insurance.
If, by his conduct, the insured represents little risk for the insurer, then the latter can make him benefit from much more advantageous rates. Note that conversely, insurers do not increase the amount of the contribution if the conduct is not “responsible”. The insured then retains the tariff provided for in the special conditions of the contract.
The advantages and disadvantages of connected car insurance
Four main advantages:
- A more attractive price and quickly scalable for good drivers or for “little riders” (if the contract so provides).
- The possibility of control – and improve – in real time his “score” as a driver thanks to the mobile application provided with the insurance contract.
- A opportunity for young drivers adopting responsible behavior to lower their contributions. Indeed, because of their lack of history and the high loss experience among this category of insured, young drivers tend to pay a high price for their car insurance (via a premium rate). “Good” young drivers therefore tend to pay for the bad attitude of other more reckless novice drivers.
- A lower risk of being terminated by the insurer in the event of a claim, if the latter has proof that you usually drive well.
On the downside:
Are the warranties and coverage the same?
Yes, the guarantees and risk coverage are the same as in a traditional car insurance contract.
In addition to the compulsory civil liability, the insured can subscribe to formulas intermediaries and all risks. Additional guarantees such as assistance, legal protection and driver protection are also included or offered as options.
In practice: installing the driving analysis box
To assess the insured’s driving, the car insurer will ask him to install a analyzing box notably :
- them vehicle usage data : distance travelled, driving hours;
- them driving behavior data : excessive speed, high speed bends, sudden braking, “forced” acceleration, etc.
This box may or may not include a GPS technology:
- To reassure its customers, Allianz uses, for example, a TomTom Link105 model without GPS technology.
- Conversely, the box used by YouDrive – Direct Assurance includes a GPS chip allowing the insurer to judge the speed of the vehicle according to its environment. On its site, Direct Assurance undertakes in return not to ” note the slightest violation of the Highway Code by its customers“.
This box must be installed on the OBD socket (On Board Diagnosis) of the car. The Tools OBD Facile site makes it easy to know where the OBD socket of your vehicle is located according to its brand and model. Normally, insurers also offer a voucher for free installation in a network of garages.
Originally, an OBD box was mainly used to control the polluting emissions of vehicles. Its use was developed to constantly monitor the correct operation of the engine. In addition to the analysis of the data presented above, it can therefore also be used to geolocate a vehicle (for assistance or theft), diagnose a fault, etc. : so many advantages that an insurer such as Allianz has chosen to highlight in the services associated with the contract.
A mobile application associated with the contract
This mobile application is an integral part of the principle of connected auto insurance, as it allows the driver to control and improve driving by having real-time access to the data collected by the OBD unit.
With insurers offering this type of contract, the application is available on the platforms iPhone and Android. To make optimal use of the application, it is necessary to activate bluetooth on your phone (for connection to the OBD box), geolocation and mobile Internet (3G or 4G).
Which insurers offer a connected car insurance contract?
More and more insurers are offering connected car insurance contracts of the Pay how you driveeven if these new insurance solutions have not experienced the growth expected a few years ago.
The offers target small riders and young drivers for an estimated price gain of 15 to 20%. Among the insurers with this type of product, we find in particular Allianz, Groupama (which took over the offer of the former Amaguiz), Direct Assurance and the brokerage company ACommeAssure.
Conclusion
If you are looking for a way to protect yourself and your family financially in the event of an accident, Connected Auto Insurance is a great option to consider. The company offers a variety of plans and options, so you can find the right coverage for your needs. You can pay for your insurance through Connected Auto Insurance’s website or through one of their partner insurance providers.