Aviva to Test Smartphone Car Insurance

Aviva is inviting motorists to help develop and shape a new smartphone driving application that may earn them as much as 20% off their car insurance. The company is using smartphone technology to develop individual profiles for motorists. These will then be used for pay-how-you-drive premiums.

Aviva is searching for 5,000 motorists with android mobile phones to help it test RateMyDrive and develop the app further. The app has already been tested among some of Aviva’s staff for several months. Drivers who participate in the test will be monitored through the Aviva RateMyDrive app for 200 miles.

During the trial, drivers’ acceleration, cornering and braking will be recorded, and then the data is turned into a score. This will help determine their premium, and the safer drivers will get up to 20% off their premium from the company. On top of possibly receiving a discount on their premiums, drivers who complete the test will have the chance to win one of five new iPads.

This trial means that motorists whose premiums are between £200 and £400 right now may be able to get 10% off, while those with premiums more than £400 could earn up to 20% off. Drivers whose premiums are less than £200 won’t get a discount, as their previous motoring history already shows they are among the safest drivers. The discounts will be added to any other offers that the drivers are eligible for. Anybody who’s interested should go the company’s website.

Aviva retail director Steve Treloar says that they think this innovative use of technology for smartphones will benefit all safe drivers – no matter their gender or age. RateMyDrive is unlike traditional telematics technology, as it only needs a small amount of data to create profiles for individual drivers. Since the app is free to download and uses the smartphone owned by the customer, there’s no need for installing a black box in vehicles.

Treloar went on to say that they will give feedback to those who complete the trial about their driving. The testers will also get a quote, which will include any discount they earn from driving safely – in case they want to buy insurance from Aviva. While safer drivers could get up to 20% off, they won’t penalise other motorists if their driving doesn’t meet the app’s standards. They will be given a standard premium quote without a discount.

The director added that they need a wide range of drivers to trial the new technology and help develop the final product. They also need help developing the customer experience before the app is completely launched on the market. They will ask participants to tell them their opinions of the app and what improvements they would like to see to benefit the user. Aviva believes that they will be able to tailor premiums more to individual motorists with smartphone technology. They want to give customers a premium for them, he added, rather than people like them.

British Insurers Brokers’ Association (Biba) research has found that there has been a five fold increase in the number of drivers installing telematics technology in their vehicles over the last two years. Nearly 200,000 motorists have signed up for telematics insurance, which has allowed some of them to cut their premiums in half.