Insurance costs could be slashed by tech
* Insurance company slams 'archaic' industry * Modern technology could save 'billions' * Tech for interaction between car and insurer...
Insurance premiums could be slashed if modern, interactive technology was used to swap data between cars and insurers replacing 'archaic' systems currently employed to set payments.
Coverbox, a pay-as-you-drive insurance provider, believes multi-billion pound savings could be achieved by the adoption of readily available technology that exchanges information between vehicles and insurers on a mile-by-mile basis.
The company provides insurance that's based on a 'pay-as-you-drive' model, where the price of cover varies by the mile; according to the time of the day or night and how the driver drives.
Policyholders get a personal website allowing them to see how many miles they've driven, and what the cost is. This enables the driver to modify their on-road behaviour, drive in a safer manner, or at less risky times, and save money.
Coverbox's deputy chairman, Johan van der Merwe, said: 'Peoples driving behaviour is normally improved if they know theyre being monitored by cameras, or police officers; that means fewer accidents. Telematics enables driving behaviour to be observed and recorded, and it allows insurers to reward drivers with lowered insurance costs if they drive in a low-risk environment.
'Massively-advanced interactive devices are available now which can enable new levels of data provision from vehicles to which they are fitted as part of pay-how-you-drive insurance products.'
Coverbox is currently piloting equipment with the potential of incorporating 'black box'-style video recording of the motorist's driving behaviour.
The company has commissioned a report into the use of telematics devices, which will be presented to a panel of leading insurance providers in the near future.