Pay As You Drive Insurance in simple words is a motor insurance scheme or an offering by insurance companies in which a telematics box or GPS tracking device is fitted to your vehicle with which they are able to track the vehicle and record driver behavior, ultimately scoring the drivers based on the same. Now, once the insurance companies have this data, they simply fine tune their insurance premium,the best and less risky drivers get lower premium payouts and the more risky drivers have to pay higher premiums.
Learn more about the 5 latest transportation & fleet management trends.
The telematics box (also commonly known as a black box) measures various aspects of how, when and where you drive your vehicle. Find out more about the list of countries contributing to the success of Usage Based Insurance.
A telematics black box contains:
SIM Card
GPS module for locating the vehicle
GSM module for sending data
Motion or G Force Sensors
Wireless communication (being introduced recently like Bluetooth and WiFi)
And a computer software hosting algorithms, data and to perform number crunching and analytics to which the data is sent.
Discover more about how a vehicle tracking device works.
How Telematics Insurance or Pay As You Drive Insurance Help :
Insurers
Increase loyalty of current policy holders & attract new customers
Generate revenue via value-added services
Lower risk, cost and claims
Drivers
Pay for the kind of driving you actually do.
Instant feed back on your driving habits
Lower risk, cost and claims
Automotive Manufacturers
Increase loyalty of current policy holders & attract new customers
Generate revenue via value-added services
Lower risk, cost and claims
Learn more about how Brazil is adopting Usage based Insurance.
Partner with us today and kick start your own Pay As You Drive Insurance Solution in 24 hours for your motor insurance company. Contact Traxroot for a quick demo today.