INSURANCE TELEMATICS
Insurance Telematics
Insurance companies have adopted M2M (machine-to-machine) technology to offer new insurance policies to their clients and to differentiate in a tough competitor environment. Based on the real driving style and behavior in traffic, the insurance telematics system is able to calculate the current monthly insurance rate based on the risk level. Drivers with more risky driving behavior have to pay a premium due to a higher risk for an accident and damage. Drivers who are more careful with their car get a discount to due lower probability for an accident.
Case summary
Drivers and roads are safer when vehicles are equipped with an insurance telematics solution with acceleration sensors. Using a CINTERION wireless module and a SIM card, data about the driver’s behavior can be constantly transmitted to the insurance company. This is especially beneficial when the driver has a pay-as-you-drive contract because driving behavior has a direct impact on the monthly insurance rate. In this case, modest, safe driving at the recommended speed limit shrinks the insurance rate to 98% of the monthly tariff. On the other hand, reckless driving with numerous incidents of hard breaking followed by quick acceleration, can result in an increased rate since the probability of an accident is much higher. With M2M technology and CINTERION wireless modules, insurance rates can be calculated individually based on actual driving habits rather than a series of assumptions.
Insurance companies have adopted M2M (machine-to-machine) technology to offer new insurance policies to their clients and to differentiate in a tough competitor environment. Based on the real driving style and behavior in traffic, the insurance telematics system is able to calculate the current monthly insurance rate based on the risk level. Drivers with more risky driving behavior have to pay a premium due to a higher risk for an accident and damage. Drivers who are more careful with their car get a discount to due lower probability for an accident.
Case summary
Drivers and roads are safer when vehicles are equipped with an insurance telematics solution with acceleration sensors. Using a CINTERION wireless module and a SIM card, data about the driver’s behavior can be constantly transmitted to the insurance company. This is especially beneficial when the driver has a pay-as-you-drive contract because driving behavior has a direct impact on the monthly insurance rate. In this case, modest, safe driving at the recommended speed limit shrinks the insurance rate to 98% of the monthly tariff. On the other hand, reckless driving with numerous incidents of hard breaking followed by quick acceleration, can result in an increased rate since the probability of an accident is much higher. With M2M technology and CINTERION wireless modules, insurance rates can be calculated individually based on actual driving habits rather than a series of assumptions.
VEHICLE TELEMATICS | bCall, Fleet Management, Insurance Telematics, Remote Vehicle Access
With Cinterion automotive modules, vehicle telematics solutions provide smooth, efficient and safe operations for both fleets and motorists. Vehicle telematics increase transparency between fleet supervisors and their total fleet; insurance companies and their insured; and roadside support organizations and drivers. Always available, wireless automotive solutions allow an immediate response to vehicle failure and early indicators of looming vehicle issues, route changes and requests for directions as well as fast help for stranded drivers. With a closer eye on operations, managers and insurance companies are able to improve productivity and introduce innovative incentive programs for safe driving behaviors.
