Usage-based or telematics car insuranc

Thanks for sharing the article on “usage-based” car insurance.   It appears that the telematics car insurance is like a “no-brainer” and gaining popularity.  Its benefits are delineated in the article.  It has the potential to overhaul the fleet industry and becoming best option for the car owners.

The monitoring technology is used to set the insurance rates either on mileage-based or behaviour-based safe driving.  However, there may be raise in base rate if the driver is not good or discounts may change on driving habits.

Information workflow starts at Data generation & transmission to Data collection & aggregation to Data Analysis to Driver Evaluation.

However, there are other hard aspects of concern also.   One important concern is privacy and data protection concerns.   The behaviour of the drivers is closed monitored and recorded by the Insurer. The insurer knows as to how far you had driven the vehicle and location. The insurer may be required to share data with multiple agencies for analysis. 

It may be invasion of privacy.

Moreover, there is apprehension that the data or personal information may be shared or sold to third parties. Similarly, it may not identify as to the person driving the vehicle.

To my mind, one will get discount by sharing driving data with the Insurer.

The mileage-based insurance may be good for – retirees, employees working from home, driving vehicle for less than 30 to 50 kms per day or the owners occasionally driving the vehicle.