A current study could change how much you pay for car insurance, depending on whether or not you are a safe driver.
Mark Stevenson, Professor of Urban Transport and Public Health at the Melbourne School of Design, said that some insurance companies such as AAMI are already embracing the idea.
“Telematics is already being used now by insurance companies,” Professor Stevenson told The Newsroom. “It provides what we call an intelligent transport system, which includes communication between vehicles and the driver, company or insurance firm.”
The four-year program is estimated to cost up to $530,000 and will monitor up to 200 drivers across Victoria aged 18-25.
Telematics devices will be fitted into testing vehicles via the QBE-owned Insurance Box policy, an award winning car insurance product designed to help customers become better drivers and save money.
The device collects sat-nav data such as speed, travel, time of day, distance, heavy breaking and collisions, and transmits them.
“I wanted to know whether this type of device really does contribute to changes in driving behaviour,” Professor Stevenson said. “And I also wanted to know whether its possible to see changes in insurance premiums based on the individual’s driving.”
Some participants of the study will receive reports on their performance compared with others of the same age via a smartphone app. Other drivers will be financially rewarded with approximately $160 for continued safe driving practices, such as obeying speed limit signs. – Photo and report by Sarah Batt