People in the tracking industry have once again proved that they have an inexhaustible supply of creative ideas. This time they came up with the idea of using a GPS tracking system to shape vehicle insurance rates flexibly. It sounds absurd, but the solution, for now a thing of the future, has a good chance of catching on. See how to lower your vehicle insurance with the Navifleet system!
How does it work?
A vehicle fitted with a tracker connected to the vehicle's CAN bus, the so-called “on-board computer”, sends over the network not only location data but also information about fuel level, consumption, engine revs and accelerator pedal pressure. Compiling and analysing this information makes it possible to determine the driver's driving style. Colloquially speaking, we can determine whether a given driver likes to “put their foot down” or prefers calm driving. Based on this information collected by the tracker installed in the vehicle, the insurer calculates the appropriate vehicle insurance premium.
Who benefits?
Drivers who drive more carefully will certainly benefit. In addition, the pay as you drive system will neutralise a negative phenomenon prevalent among insurers: discrimination against young drivers. Until now, a newly qualified driver insuring their first car was doomed to an inflated insurance rate because of their age and limited driving experience. With GPS tracking they will be able to prove that they are a prudent driver, which will result in a lower insurance premium.
To sum up the above, I state unequivocally that this concept has a huge chance of being realised, especially in the era of a pro-consumer market. For my part, I can also assure you that the NaviFleet team keeps a close eye on the development of the tracking industry and analyses every possible development path, including the one described in this article.
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