Car owners have always had a love-hate relationship with their insurance providers for a variety of reasons. Either way, companies that offer these services continue to appeal to their customers with new products that are geared toward making their customers happy. Without insurance, for instance, drivers would be responsible for footing medical bills of anyone they injured on the road, in addition to paying repair fees for the victim’s vehicle and their own. Insurance organizations ensure that this does not happen, but car owners have always wished the exercise was more than fair. Of course, drivers who engage in careless driving have to service their actions with more premiums, but what happens to groups that engage in reckless activities on the road and never get caught?
Enter Heritage Correct
This is a new insurance policy by Heritage Insurance Company. The firm says that this is the first telematics motor insurance solution in the country that is targeting to improve driver behaviour and potentially cutting accident frequency and the cost of insurance through analytics.
In principle, if installed on your car, the solution will keep tabs of your driving habits and give feedback to Heritage. Your vehicle will keep a record of any risky stunts that people pull on the road, and so forth.
Ideally, telematics is a technology that monitors a car. It leverages GPS data and in-built diagnostic tools to record and map details about your vehicle like how fast it is moving, and cross-reference the collected information with internal behaviours of your motorcar.
“A comprehensive formula makes use of the driving data collected to calculate an appropriate driving score. With the anticipated reduction in the overall claims to the company, the customer is expected to benefit through reduced cost of insurance achieved through premium cashback to the customer at the end of each policy year, based on the customers’ overall driving scores,” highlights Heritage.
If complemented with 3G or 4G connection, telematics can then be used to send data and communications continuously between a car and a central management system. It is also the same technology that has been used for a very long time in race tracks for Formula One drivers to pinpoint the location of rival drivers.
Heritage says drivers whose records indicate they have been driving safely may get up to 15 percent cash back on their yearly paid premiums.
“Our usage-based insurance (UBI) product, Auto Correct, is a feasible answer to the ever-changing customer journey and industry, which has seen the emergence of innovative customer channels and millennial adoption of new technologies. Usage-based insurance (UBI) and acceptance of telematics capability in modern vehicles is expected to outpace traditional insurance,” says to Godfrey Kioi, Managing Director of Heritage Insurance Kenya.