Smart Phone App Lowers Car Insurance
Aviva auto insurance in the UK is using technology to help its customers lower their auto insurance rates. This technology is similar to that being used by Progressive and other car insurance companies in the US who are monitoring driving habits, but with one big difference. Aviva is monitoring customers’ driving habits through their Android smart phones. The company has already been testing this new process on their employees, but is looking for 5,000 volunteers to help in the testing process. This information comes from The Guardian’s “Aviva to trial smartphone car insurance technology,” by Hilary Osborne.
In the past, Aviva auto insurance used black box technology to monitor driving habits. Black boxes are installed in vehicles to track driving habits like braking, following, and speeding. Drivers who demonstrate safe driving habits are eligible for a discount on their auto insurance premiums. This new technology allows monitoring to occur straight from a driver’s smartphone, making it much simpler to begin the program. Research has shown that this telematics technology not only helps customers reduce their car insurance premiums, it really makes for safer drivers overall.
Your first 200 miles of driving will be monitored after downloading Aviva’s RateMyDrive application. Once your driving habits are monitored, you are assigned a score that will determine your auto insurance premium. One stipulation is that it won’t really help you if your rates are low to begin with. Drivers labeled safe can receive a 20% discount on their premiums, 10% if they are already paying a rate predetermined as low. But those with the lowest premiums already will not receive an additional discount. If for some reason your driving is not deemed safe after you have been monitored, you will maintain a standard Aviva car insurance premium. Look for more US companies to use smart phone technology to monitor driving habits soon.