February 8, 2012
TomTom GPS Now Helping Drivers Get Lower Premiums In The UK
GPS manufacturer TomTom announced a new partnership with insurance broker Motaquote on Wednesday.
TomTom said it teamed up with the insurance company to launch Fair Play Insurance, which is a product that rewards "good" drivers with lower premiums.
The insurance provider will use data from a TomTom GPS, such as harsh cornering and sharp breaking, to determine whether the driver deserves a lower premium.
"We offer a unique combination of navigation, traffic information and telematics which opens up great opportunities for insurance companies to promote greener, safer driving and create a ground breaking portfolio of new insurance products," Thomas Schmidt, Managing Director TomTom Business Solutions, said in a recent statement.
Drivers who sign up for Fair Play will get a specially-developed TomTom PRO 3100 navigation device, which includes Active Driver Feedback and LIVE Services.
The drivers will also have a LINK tracking unit fitted to their vehicles, which allows driver behavior and habits to be monitored.
The data observed by the insurance company can also be seen by the driver in the dashboard of their car, through email bulletins, or by using online tools.
"We've dispensed with generalizations and said to our customers, if you believe you're a good driver, we'll believe you and we'll even give you the benefit up front," Nigel Lombard, Managing Director of Fair Pay Insurance, said.
"This is unlike some other telematics-based schemes where you may have to prove your ability over a number of months. So if you think of your insurance as your car's MPG -- the better you drive, the longer your fuel will last."
The insurance will remove what other insurance companies call "risk factors", such as zip code, gender, and age or vehicle type.
"We are delighted Motaquote have recognized this potential in the launch of such an innovative product," Schmidt said in a statement.
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