Distracted driving claimed
A recent study from the AAA Foundation for Traffic Safety found that about
As April is Distracted Driving Awareness Month, Digital Insurance reached out to Driver Technologies for further insights into how UBI and telematics programs encourage safer driving habits and how the space is evolving.
The following responses are from Rashid Galadanci, CEO and co-founder of Driver Technologies.
How do UBI and telematics programs impact distracted and risky driving?
Traditionally, carriers base car insurance rates on demographics, location and credit scores, but insurance carriers should and have begun to focus on how you drive. Using telematics apps or external hardware encourages drivers to put their phones down and focus on driving, impacting distracted and risky driving. The vast majority of insurance companies offer telematics programs to enable premium discounts to insureds who share driving insights that power a driving score, such as hard braking, acceleration or excessive speeding.
Driver Technologies offers a "Driver Score" to commercial fleets and insurance partners, which is a video telematics-based score using your mobile device that helps insurance companies underwrite and classify the risk, instead of implementing traditional factors such as demographics and credit scores. Drivers can track detailed event-level breakdowns with speed, accelerometer, location and video data to understand what occurred during a specific incident, whether an accident occurred or not. Many insurance companies are turning to driving scores to underwrite and classify the risk of insuring drivers to determine premiums. Through safer driving practices and coaching, drivers can improve their driver score, allowing them to earn the potential for insurance premium discounts.
What innovations are you seeing in UBI? Any changes in tech, risk education, incentives or offering to consumers?
The next innovation we will see in UBI is the future of telematics via connected car data. Oftentimes, telematics are included as aftermarket features versus built-in features of the vehicle. We know many carriers lack sufficient in-car data; therefore, many are turning to third-party apps that allow users to opt-in to share their data, so insurance companies will have the opportunity to develop UBI programs centered around connected vehicles. The future of connected car solutions will create more opportunities for users to have the insurance coverage they deserve and promote good driving habits based on how they actually drive using the data from the car.
One way to encourage the implementation of digital solutions in vehicles is by partnering with insurance companies. Insurance carriers who are on the cutting edge and understand that drivers need an accessible driving safety solution today are starting to leverage video, connected car data and telematics as a more accurate determinant in pricing insurance premiums.
What are some additional ways that insurers can address distracted driving or dangerous driving behaviors?
With the advancements made through Android Automotive OS (AAOS), which is an open-source operating system for vehicle dashboards, insurers can start building connected car programs that reward drivers for utilizing the safety technology in their car, such as adaptive cruise control or lane keeping. For example, there are third-party apps that capture detailed vehicle and driving information, all driven by user opt-in, enabling innovative opportunities for insurance while prioritizing user control and privacy.
Drivers can choose to opt-in to share this data with their insurer as opportunities may include personalized premiums, pay-as-you-drive plans reflecting mileage, discounts for safe driving habits, improved underwriting and faster, fairer claims predicting and processing.
Third-party applications that have committed to building for AAOS are opening up the door to economical approaches to building these types of insurance programs that allow consumers to share more granular data about their driving if they so choose to opt in. Ultimately, this is a win for insurers, OEMs and drivers. Insurers will gain more meaningful data, OEMs unlock new services, and consumers benefit from smarter pricing based on how they actually drive.
Some examples of additional technology we've seen to help address distracted driving includes wearable technology like smartwatches and implementing "limiting" technologies like the LifeSaver app and do-not-disturb features.
