The Co-Operative Insurance is a British company who has debuted a revolutionary new program that could help drivers aged 17 to 25 drive safer than ever before. The program is a pay-as-you go insurance plan that uses a device called a Smartbox, which measures young adult and teen drives in four areas: cornering, speed, breaking and acceleration, and the time of day at which the vehicle is being driven.
All of these measurements are calculated every four months and the driver is assessed an insurance policy based on their driving behavior. Teen drivers are notoriously tough to insure, which makes a program like this so great as it gives young drivers the chance to earn a lower insurance rate.
The Co-Operative Insurance Smartbox is expected to save young drivers an average of $537 a year. Here's hoping this program makes it stateside sometime soon.
Key Themes Behind This Trend
- Pay-as-you-go Insurance
- The Smartbox program is paving the way for custom-based insurance that could revolutionize the industry
- Behavior-based Auto Insurance
- The four-month assessment cycle for young drivers creates an opportunity for real-time adjustments based on driving behaviors
- Telematics-based Insurance
- Using the Smartbox device for measuring driver performance creates an opportunity for insurance companies to integrate with technology providers
Where This Applies
- Automotive Industry
- The Smartbox program creates an opportunity for car manufacturers to integrate the device into new models, promoting safer driving behaviors
- Insurance Industry
- The program could disrupt traditional insurance models and incentivize companies to adopt custom-based insurance programs
- Technology Industry
- Telematics-based insurance could create an opportunity for technology providers to partner with insurance companies to develop innovative products and services
