Insurer in the driving seat

MOTORISTS are letting insurers watch over them Big Brother style by monitoring their driving habits in return for cheaper premiums.

Insurer Youi has been undergoing a trial with more than 5000 participants who have consented to the company watching over them.

By turning on the Smart Drive functionality in the insurer’s phone app, while on the road Youi can then monitor their driving behaviour.

This includes a seven-day scrutiny of speed, distance time of day.

It can also track their driving style including how smoothly they accelerate and brake. And if they prove they are good behind the wheel they will be delivered a 10 per cent discount.

Youi’s chief customer and innovation officer Nathaniel Simpson said it gives them a better understanding of a customer’s risk profile.

“What we are looking to understand is what we can assess from a driving perspective that you can’t really ask in a normal quote application,” he said. Customers just need a recent smartphone device.

Other countries where insurers reward drivers with discounts by monitoring their driving include the US, Malaysia and Indonesia.

New start-up insurer UbiCar also rewards drivers by scoring them between 40 and 100 using a customer’s phone app and this information is used to measure and reward safer driving with cheaper premiums.

Acceleration, braking, cornering and phone distraction as well as speeding are monitored and customers could receive discounts on their monthly premium of up to 60 per cent.

Financial services firm Canstar’s spokesman Steve Mickenbecker said Youi customers should not be concerned about this information being used against them in a claim.

“I believe they won’t use it in assessing a claim because it’s in the Q&A’s online but it’s not as clear cut in the terms and conditions,” he said.

“But is it possible that the police in the event of a serious accident might want information in relation to this and it would be recording this information.” But Mr Simpson said the app “isn’t so smart” to determine whether a driver for instance was speeding when it ran up the back of another vehicle.

“We can categorically commit to the fact that data would never be used in the assessment of a claim,” he said.

Of those customers who have taken part in the Youi trial nearly all of them have obtained the discount.

Customers can register or deregister from Smart Drive at any time.

“That data would never be used in the assessment of a claim” YOUI SPOKESMAN