Smartphone app rewards good drivers with lower premiums

Smartphone app rewards good drivers with lower premiums

SmartDriver_HomeSafer drivers can benefit from lower insurance premiums based on their individual driving performance – thanks to a free smartphone app offered by Tower.

‘SmartDriver’ monitors and assesses an individual’s driving behaviour based on 250 km of travel. Drivers who score well can then gain a discount on motor premiums of up to 20%.

Tower chief executive officer David Hancock says the insurance industry does not have a reputation for innovation, but Tower is committed to delivering relevant products and better value to customers.

“This app is the first of its kind to be launched in Australasia,” says Hancock.

Tower customer proposition general manager Mark Savage says the app means motor vehicle insurance premiums can now be determined using an individual’s driving behaviour, rather than solely relying on averaged claims risk and demographic data such as age and location.

“This kind of user-based-insurance – or UBI – has the potential to dramatically change the motor insurance market.”

Savage says telematics, the technology behind UBI, enables driving data to be gathered and transmitted directly from a vehicle on the road to the insurer. The insurer can monitor, analyse, score and then adjust premiums accordingly.

“By collecting basic driving information such as trip duration, distance travelled, location, braking and acceleration, we can build an understanding of driving behaviour and individual risk and adjust premiums accordingly. The app also allows customers to see their score versus the average score calculated from all the SmartDriver users who have completed 250 kilometres using the app.”

“Given that more than 60% of Kiwis own a smartphone, we expect SmartDriver to be extremely popular.”

SmartDriver also provides a trip summary and safe driving tips to help motorists improve their driving behaviour.

SmartDriver can now be downloaded for free from the Apple App Store or Google Play, with the phone placed in a car using a cradle or in a stable position on the dashboard. It is available to all drivers, regardless of whether or not they are a Tower customer.

DriveFactor developed the SmartDriver app for Tower, and CIO Mac Fraser says telematics has been extremely popular around the world as people love to compare themselves to others and of course to save money on their insurance.

The SmartDriver app is now available for download free of charge from the Apple App Store or Google Play.

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