21st Century Auto Insurance - 21 Century Car Insurance QuotE

Date: Mar 18, 2005
Contributor: Lakisha Leaks

New device reduces insurance rates

Norfolk residents will get the chance to be guinea pigs for a new device that measures driving habits and could result in lower car insurance premiums.
Known as the “autograph,” it plugs into the diagnostic part of a vehicle found under the steering wheel. It tracks average driving speed, sudden breaking, kilometres driven, and time of day the vehicle was in use.
After six months, the device is plugged into a home computer and the data gathered sent to an insurance company. If it’s favourable, drivers can get a discount of up to 25 per cent.
“It’s individualizing people, which we understand is what they want,” said Sally Turney, spokesperson for the Aviva Insurance Company of Canada, which is launching the pilot project with 5,000 customers across the country.
Normally, drivers are classified according to a series of questions, including how much they drive a year, when they drive (rush hour is considered more dangerous), their age, and whether they use their vehicle at work.
As a result, some people end up paying more than they should.
“We get a lot of customers who say ‘We never drive that car,’” said Burke Neal of McFarlan Rowlands Insurance Brokers in Norwich. “Maybe it’s a second car. It’s very frustrating at times. We’re in the middle.”
The autograph will provide irrefutable evidence for people’s driving habits, said Neal, who will be able to offer the device to his Norfolk customers.
The aim, he said, is to give drivers some control over premiums and to encourage safer driving.
“As a tool for improving driving it should be effective,” said Brian Patterson, president and general manager of the Ontario Safety League. “It can identify positive things for change.”
After the device is plugged into the computer, it will show what kind of discount the driver is entitled to and the details of the driving record.
“A lot of people are not aware of the number of times they are driving over the speed limit,” said Patterson. “People found driving 140 km/h usually say they are just driving with the flow.”
The autograph should lower premiums for people who take transit to work and leave the car behind in the garage, and in rural areas for people who work at home, said Turney.
Sheila King of Simcoe, a retail store manager and mother of grown children, said she liked the idea.
“If people slow down, maybe there will be a reduction in insurance (for everyone),” King said. “It’s a bit like Big Brother watching. But maybe they should be watching.”
Aviva will offer the autograph to the first 5,000 customers who sign up. Drivers view the data first and can decide not to send it to the insurance company. Those who do, however, will get an automatic five per cent discount.




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