UK: Global insurance company Aviva is launching a car insurance smartphone app using telematics technology that would give motorists a discount based on their driving style. The insurance company is experimenting with an iPhone app that will offer discounts on car insurance based on customer’s driving speed and style. The app will use telematics technology to monitor a driver’s behavior by gathering data transmitted from a Smartbox, which is fitted to the policyholder’s car, via satellite. The app will gauge motorists’ mileage, the time they drive, and how they drive. Based on the gathered data, motorists will be penalized for sudden braking or cornering via a black box installed in the dashboard of the car.
According to sources, Trevor Matthews, Chief Executive, Aviva UK, said that the experimental app would use technology already available in smartphones to monitor driving. However, the only drawback with the phone-based app is that it might not be in your car. The concept behind this insurance to promote careful driving, Matthews added. According to industry experts, telematics could ensure that an entire generation is not priced off the roads. Research estimates that more than two thirds of young drivers’ annual premiums will witness a decline by as much as 22pc after driving with a black box installed for over a year, saving around hundreds of pounds approximately.