One of the country’s largest insurers is starting to roll out quality-based insurance. Called IntelliDrive via Connected Car, Travelers believes the new initiative will help safer drivers starting with customers in Pennsylvania and Illinois.
But will drivers agree to have their performance monitored in real time?
IntelliDrive via Connected Car uses vehicle information about things like brakes, acceleration, speed, and time of day to instantly calculate IntelliDrive customers’ mileage, which is used to generate their preferred insurance premiums. Travelers has partnered with data analytics company LexisNexis, which will provide driving information from vehicles that have signed up for the program.
I contacted Joe Meisinger, Vice President of Personal Insurance Product at Travelers Insurance, who told me that this service will help smart drivers in a number of ways.
“With IntelliDrive through Connected Cars, customers who drive well can benefit from immediate savings instead of waiting until maintenance,” says Meisinger. “Good driving habits can lead to savings of up to 30%, while dangerous driving habits can lead to more savings, which encourages good driving and gives money to customers who practice safe driving.”
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Travelers Insurance plans to continue to expand its telematics offerings – technologies used to track and transmit driving data – in the future, leveraging technological advances and customer insights. The truth is that this is undoubtedly the way the insurance industry will go for many years. Insurers have long rewarded a good driving record, and thanks to the proliferation of connected technologies, there is a greater incentive for underwriters to get a clearer picture of their at-risk customers’ records.
Currently, customers have the option to enter whether their vehicle has integrated technology, and the year, make, and model are supported by IntelliDrive.
“IntelliDrive via Connected Cars makes registering telematics easy,” emphasizes Meisinger. “If the customer chooses, Travelers will only use the car’s data to affect their insurance premiums based on the driving behavior captured by the car. If the data shows good driving, customers can benefit immediately.”
All of this confirms the transition period we are in in terms of our transportation systems. The advent of self-driving cars creates new problems in this picture, although Travelers believe that modern insurance tools are suitable to deal with this change.
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Meisinger adds, “As we move toward more autonomous vehicles, the existing system will also help reduce consumer confusion, regulatory uncertainty, and market disruption. Remember that car insurance is also a great way to protect against some of the risks that come with owning a car.” , independent or not, including problems related to climate change and theft.”
Meanwhile, smart customers with a good driving record should embrace quality-based insurance, especially since the savings at this point make it worth it. This will not sit well with the squeamish, who fear the consequences of following.
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The reality, for better or (mostly) for worse, is that we accept tracking and monitoring as is, much of which comes without a discount. We can also save a little money by doing this.