REMOTE MONITORING INFLUENCES INSURANCE PREMIUMS
Motorists can increasingly expect to have their driving skills monitored by insurance companies looking to tailor their premiums to reward good drivers
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.