Mo­torists can in­creas­ingly ex­pect to have their driv­ing skills mon­i­tored by in­sur­ance com­pa­nies look­ing to tailor their pre­mi­ums to re­ward good driv­ers

Toyota Connect/Lexus Life - - ON THE MOVE -

The In­ter­net of Things is lead­ing to ex­cit­ing pos­si­bil­i­ties for the in­sur­ance in­dus­try by us­ing sen­sors to gather in­for­ma­tion about driv­ing habits. The data can be an­a­lysed and used to as­sess the risk of in­di­vid­ual driv­ers and in­flu­ence their monthly pre­mi­ums.

Dubbed us­age-based in­sur­ance (UBI), the pre­mi­ums can be in­flu­enced by the type of ve­hi­cle, the dis­tances trav­elled and the be­hav­iour of the driver, to tailor pay-as-you-drive or pay-how-you-drive pack­ages. UBI also en­cour­ages safe driv­ing by promis­ing lower pre­mi­ums for good driv­ers, re­sult­ing in fewer ac­ci­dents and re­duced claims pay­ments.

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