Satnav manufacturer TomTom has joined forcers with insurance broker Motaquote to launch a new car insurance product that rewards safe drivers with lower costs.
Anyone that signs up to the Fair Pay Insurance service will be issued a TomTom Pro 3100 navigation device that will alert drivers when they perform activities that could potentially result in an accident such as late breaking and sharp cornering. The policy also requires a Link tracking unit which monitors the driving habits and displays them on the driver's dashboard and in regular emails, is fitted to the device.
Initially a driver will pay lower premiums but if their driving habits are reckless they will find they are pushing their premium up themselves.
"We've dispensed with generalisations and said to our customers, if you believe you're a good driver, we'll believe you and we'll even give you the benefit up front," said Nigel Lombard, Managing Director of Fair Pay Insurance.
"This is unlike some other telematics-based schemes where you may have to prove your ability over a number of months. So if you think of your insurance as your car's MPG – the better you drive, the longer your fuel will last. It's the same with Fair Pay Insurance, good drivers get more for their money and in that sense they will pay ultimately less."
Drivers that take out the policy will be required to pay for the TomTom device and tracking kit themselves. Furthermore, the device also offers benefit from TomTom's Live services that include accurate traffic information that is updated every two minutes.
"We offer a unique combination of navigation, traffic information and telematics which opens up great opportunities for insurance companies to promote greener, safer driving and create a ground breaking portfolio of new insurance products," said Thomas Schmidt, managing director TomTom Business Solutions.
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Comments
Terence Hill said: Amazing ignorance The satnav does not do the tracking The link device a micro computer is hidden away and connected to the ignition That does the tracking--the article says so
TomUK said: If doctors and priests are required by law to break their confidentiality if you admit to a crime such as in counseling or in a catholic confession box then how long before a law is passed to force TomTom Insurance companies to alert the police as soon as youve exceeded the speed limitAll the police would need to do is make the device home office approved and they have a valid form of evidenceA VERY slippery slope this
oatc said: If such a system was working all the time or wired to the ignition could it not also link insurance to extent of vehicle usage places travelled and times A vehicle is at some risks even when parked or garaged but usage must surely be the prime link to claims with driving quality next
Pedant said: breaking or braking
oatc said: late breaking para 2
Paul said: I cannot use my phone while driving ad its dangerous but I can read my emails get a grip muppits
Ereitiz said: The chances are that the display can be switched off but the unit could still be tracking - a bit like the memory on your car radio
Hanson-10 said: this wont work as the sat nav will have to be switched on all the time and people just wont switch it on also people will not leave is stuck to the window as the car is more than likeley going to be broken into to take the sat nav that is on view how will this work if its switched off
Carrie-ann_skinner said: mike all corrected now
Matt Egan said: Yes A very different thing from driving habits Thanks
Mike said: drivign habits