• Alex Carter

What is Pay As You Drive Insurance?

Updated: Jun 27

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.

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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.


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