Below is another example I’m drawing on for my behaviour change work. I know this can be badged as ‘pay as you drive’. But, given how high young drivers’ premiums are, what must be going on here is young adults taking up the chance to demonstrate, though the use of GPS tracker in their car, that they are a responsible driver, in return for a premium that reflects this.
In which case, this is use of behaviour effects around Commitment and Consistency. Our brains work really hard to be consistent with commitments we’ve made.
So this is another one for the databank, to be inspired by when we’re considering how to help people adopt more self-sufficient or more sustainable behaviours.
Car insurance ‘smartbox’ that could lower young drivers’ premiums
Device assesses behaviour such as speed and braking, then calculates a premium accordingly
Are you aged between 17 and 25 and reckon you’re a good driver but are forced to pay hefty insurance premiums due to the antics of your peers? If so, new pay-how-you-drive insurance policies are aimed at drivers such as you.
Hi-tech computer telematics will track by satellite not just when you are driving, but how fast, how you take corners, how you brake and even the car’s G-force. It has been dubbed the “spy in the car” and now some of Britain’s biggest insurers are introducing it as a way to offer young drivers, especially 17- to 25-year-old males, an affordable level of insurance.
The system was pioneered by a company called Insure The Box, but now the Co-op is wheeling out its offering, while the AA is thought to be not far behind. Marmalade, an insurer specialising in young drivers, is also launching a similar product next month.
Pay-how-you-drive policies are aimed at under-25s, the age group most likely to be involved in a car crash. Recently 17-year-old Jake Redshaw hit the headlines when he was quoted £33,000 by the AA to insure a three-year-old Vauxhall Corsa. The AA claims the quote was a mistake but even then the cheapest fully comprehensive quote Jake was offered was £6,000, twice the value of the car.
So how do pay-how-you-drive policies work? A “smartbox” is installed in the car which monitors the driving habits and skills of the driver, with premiums based on driving behaviour.
Insure The Box measures drivers’ mileage, when they drive, and how they drive. Excessive G-forces, sudden braking or cornering and long periods of driving without a break are monitored.
Policyholders are charged by the mile and motorists initially pay for 6,000 miles. Once these are used up they can buy more miles as they need them. Policyholders are rewarded with “free” miles if they drive safely.