The usage-based insurance private car policy for car owners is personalized and offers a customized solution towards driving profile.
Most car owners look for ways to keep the insurance cost low. While there are several ways to keep the car insurance premium low, here is another one depending on the kilometres you clock. TATA AIG General Insurance Company has launched a telematics-based next-gen application and device ‘AutoSafe’ today. The app helps policyholders to save on premiums by selecting the kilometres driven, promotes safe driving, works as an anti-theft device as it comes with a GPS-based tracking facility.
Available on all policies offering personal accidental cover to the tune of Rs. 15 lakhs for owner and driver, this app also tracks distance travelled by the vehicle, live speed and other driving pattern parameters and offers bonus kilometres for good driving behaviour at the time of the renewal, thus, promoting safe driving habits.
The usage-based insurance (UBI) private car policy for car owners, launched under the IRDAI’s Regulatory Sandbox, is personalized, affordable and offers a customized solution towards your driving profile. This policy includes other value-added propositions like depreciation reimbursement, daily allowance, no claim bonus protection cover etc.
Policyholders will benefit from the policy’s flexible kilometre-based package that enables savings on premiums compared to conventional policies. Policyholders can choose between 2,500 kilometers, 5,000 kilometers, 7500 kilometers, 10,000 kilometers, 15,000 kilometers and 20,000 kilometers.
If one exhausts all the kilometres within the policy period, one can buy additional kilometres by opting for the top-up kilometers option. They can choose between 500 kilometres, 1000 kilometres and 1500 kilometres, thus, helping savings on cost based on usage.
The ‘Auto Safe’ device is GPS-enabled and is linked to a mobile app that records all information, tracks the distance traveled and generates reports about vehicle health or driving patterns of the policyholder.
This telematics device or app is fitted or linked to the car as the motor insurance policy becomes active and must be kept throughout the policy period. The information collected is evaluated over time and each driver or the policyholder is allocated points based on performance. Besides, this device contains motion sensor support and generates fuel-saving reports apart from monitoring aspects like hard braking, nighttime driving and acceleration. Also, these device guards against fuel slippage and dangerous driving habits.
The usage-based motor insurance, also known as ‘Pay As You Drive’, allows policyholders to pay the car premium depending on how many kilometres the car has travelled. ‘Pay As You Drive’ is ideal for the customers who have multiple vehicles and may not use each vehicle as much, therefore, they may not have to pay a large premium amount. It is also useful for those who commute daily via public transport or frequently travel beyond city limits and rarely use their personal vehicle.