05 October 2005

Pay your insurance by the mile? Can do

Now here's a pretty thoughtful and intelligent use for vehicle GPS tracking. One of those, "Wow, why didn't I think of that" ideas:
http://www.trafficmaster.co.uk/shownews.cfm?num=375

Basically, an insurance company is going to charge for auto insurance by use. Makes sense when you stop to think about it. If a driver happens to use his vehicle very little, he or she pays an extraordinarily high cost per mile driven for insurance. If our example is is very high mileage driver, he or she is getting a bargain per mile and the insurance company is far more exposed.

Stick an unobtrusive tracker on the vehicle and the insurer can charge exactly the amount that is fair to both customer and client. They don't mention it in the press release, but th opportunity for performance monitoring is certainly there ... detecting excessive speed and other high risk behaviors.

Too much like big brother? For some, perhaps, but the alternative is everyone paying too much (to cover unknown eventualities) for a service which ought to be easily measurable and billable.

Oh, an yes, perhaps save a few lives too.

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