Pay-As-You-Drive pioneer, UK motor insurer insurethebox, hit a milestone recently, selling its 50,000th telematics-based policy in just 16 months. The insurer has plans to double this total during 2012.
According to an article in the online automobile news source, Honest John, Elizabeth Ngulube from Stockport, Greater Manchester purchased the policy. Elizabeth says that she is saving “crate-loads of money”. The insurerthebox quote was £2,000 cheaper than other quotes she obtained.
The ‘policy’ has interesting wrinkles (at least to the Canadian eye). According to the Honest John article:
Policyholders buy an initial 6,000 miles of cover.
A ClearBox, installed behind the dashboard, monitors their driving.
Data sent via satellite assesses their performance by five different criteria.
Good drivers receive up to 100 bonus miles per month.
Each policyholder has their own portal where they can check how well they have driven and how many extra miles they have earned.
According to Mark Grant, business development director at insurethebox, pioneering a new insurance scheme was an ‘act of faith.’ However the results have been gratifying. “We expect to reach 100,000 sales during 2012,” Grant said.
According to Honest John, savings to the insureds using telemeatics-based policies extend beyond the first period. The article states, “around 60% of insurethebox customers receive discounts on renewal at a time when motor insurance prices generally have risen by 30%.”
Note: The 2012 Insurance-Canada.ca Technology Conference will feature a panel presentation on Usage-Based Insurance using Telematics. Stay tuned for details.