How IoT Technology Allows Insurance Companies to Reward Good Drivers

You've reaped the benefits associated with the Internet of Things (IoT), whether it is in home automation or access to information, but the changes have only started. Apply connectivity to everything – and you'll see your world improve. One aspect of your life where the IoT can translate into money savings is with your driving habits.
With connected sensors, insurance companies now offer personalised insurance products and discounts to good drivers. To you, this translates to the options of usage-based insurance, checking your vehicle's safety, and rewarding you for good driver habits.
Insurance Companies Offering Affordable Premiums

The IoT allows for consumers to get affordable premiums, depending on which option is right for you. In general, whether you get good prices for being a good driver or your use your vehicle less than others, you can expect a discount up to 50 percent on what you currently pay.

Good prices for good drivers. One major insurance company offers a piece of equipment you add to your vehicle and this device tracks driving habits. If the driver has good habits, they qualify for a lower premium that remains effective with good car movements. Sensors have the ability to track acceleration, speed, braking, and metrics about driving patterns.

Decreased premiums for usage-based pricing. It is estimated that by 2020, over 50 million drivers in the United States will try usage-based insurance. If you use a sensor on your car, you may qualify for lower rates because you actually drive less than other users. Metromile offers a pay-per-mile insurance policy for low-usage drivers.

Quote Customisation and Services for Your Needs

If the driver is willing to give permission for tracking, insurance companies offer quote customisation and services based on individual driving habits. For example, Jooycar (primarily serving Latin America) uses a telematics device to let drivers know if their vehicle needs repair.

Information about drivers in your zip code, access to your car's analytics, and general diagnostics actually improve the insurance experience for all drivers. Some of the other personalised services are:

  • Rewards for changing driving habits
  • Discounts for servicing your vehicle
  • An improved claims process
  • Traffic insights from others in your area
  • Personalised notifications, rewards, and discounts from the insurer
  • Decreasing theft
Data Helps the Driver

As a driver, access to information about your individual habits leads to major improvements in how you drive. For example, a connected device can text you or send your vehicle a notification that you brake too quickly at a set speed range. There is room for every driver, even one without tickets or accidents, to boost his or her skills.

This is also great for the young drivers in your family and it also gives parents peace of mind about their children's driving habits.