The telematics and emphasis on data is very interesting but unfortunately will allow insurers to incorrectly charge customers because the data can’t possibly be 100% correct OR 100% relevant. I for example have been driving for 39 years and drive performance vehicles, regular vehicles, large motorhomes, pull large enclosed trailer, ride a motorcycle and I’m sure my telematics data would say I stop to suddenly, accelerate to quickly, turn to quickly. Yet I have been in only 1 accident during those 39 years which was when I stopped for a left turn signal that turned yellow then red and was rear ended by someone who admitted they were looking at their phone. I also drive around 25,000 to 30,000 miles per year – no tickets either. Why should I pay more for my insurance based on telematics data that doesn’t prove I am a less safe driver than anyone else while my driving record shows I am indeed a safe defensive driver? I never drink and drive and rarely talk on my cell phone (always hands free if I do) and never text or view things on the web when in the car. If insurer’s want relevant data to predict claims then they should focus on phone data for drivers since the majority are using them constantly while driving rather than paying attention. So much so that we are building vehicle with automatic braking systems and sensors to “wake up” drivers who aren’t paying attention. Seems very backwards to me.
DJV- I think the issue you bring up relates less to UBI in general as it does to specific implementations of it where driving behavior is judged rather simplistically by counting numbers of harsh braking and turning maneuvers, etc. The telematics scoring models that most insurers use have room for improvement. For example, few insurer scoring models consider the context / environment in which you drive, and yet context is so important for understanding behavior. A hard braking maneuver during morning rush hour is different than a hard braking maneuver at midnight in bad weather with low visibility. The goal of telematics modeling efforts, at least from Verisk’s standpoint, is to get to the point where a skilled driver like yourself can be identified as such instead of being confused with a distracted driver who may tend to exhibit similar levels of harsh braking and acceleration as you. Keep on driving safely! Hope you can get a nice big discount from a UBI program some day, because it sounds like you deserve one.
@DJV – of course you are the perfect driver…I think if you ask anyone reading this if they will have a crash next year, they will all say “no”, as we are all perfect drivers too :) But reality is that people make mistakes; people get tired etc. and people will have accidents and claims. Telematics is a great tool for helping people stay alert and aware of how the are driving, no matter what age or experience.
Also not sure why you make the assumption that it will cost you more. If anything, telematics has proven to reduce premiums; which you can see if you look at young driver insurance premiums over the last 5 years.
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The telematics and emphasis on data is very interesting but unfortunately will allow insurers to incorrectly charge customers because the data can’t possibly be 100% correct OR 100% relevant. I for example have been driving for 39 years and drive performance vehicles, regular vehicles, large motorhomes, pull large enclosed trailer, ride a motorcycle and I’m sure my telematics data would say I stop to suddenly, accelerate to quickly, turn to quickly. Yet I have been in only 1 accident during those 39 years which was when I stopped for a left turn signal that turned yellow then red and was rear ended by someone who admitted they were looking at their phone. I also drive around 25,000 to 30,000 miles per year – no tickets either. Why should I pay more for my insurance based on telematics data that doesn’t prove I am a less safe driver than anyone else while my driving record shows I am indeed a safe defensive driver? I never drink and drive and rarely talk on my cell phone (always hands free if I do) and never text or view things on the web when in the car. If insurer’s want relevant data to predict claims then they should focus on phone data for drivers since the majority are using them constantly while driving rather than paying attention. So much so that we are building vehicle with automatic braking systems and sensors to “wake up” drivers who aren’t paying attention. Seems very backwards to me.
DJV- I think the issue you bring up relates less to UBI in general as it does to specific implementations of it where driving behavior is judged rather simplistically by counting numbers of harsh braking and turning maneuvers, etc. The telematics scoring models that most insurers use have room for improvement. For example, few insurer scoring models consider the context / environment in which you drive, and yet context is so important for understanding behavior. A hard braking maneuver during morning rush hour is different than a hard braking maneuver at midnight in bad weather with low visibility. The goal of telematics modeling efforts, at least from Verisk’s standpoint, is to get to the point where a skilled driver like yourself can be identified as such instead of being confused with a distracted driver who may tend to exhibit similar levels of harsh braking and acceleration as you. Keep on driving safely! Hope you can get a nice big discount from a UBI program some day, because it sounds like you deserve one.
@DJV – of course you are the perfect driver…I think if you ask anyone reading this if they will have a crash next year, they will all say “no”, as we are all perfect drivers too :) But reality is that people make mistakes; people get tired etc. and people will have accidents and claims. Telematics is a great tool for helping people stay alert and aware of how the are driving, no matter what age or experience.
Also not sure why you make the assumption that it will cost you more. If anything, telematics has proven to reduce premiums; which you can see if you look at young driver insurance premiums over the last 5 years.