TomTom has teamed up with a broker to offer cheap car insurance quotes based on rewarding good drivers by offering lower premiums.
The cover ignores traditional risk based underwriting based on age, gender, postcode location and type of vehicle
Instead, TomTom reckons on charging a low price for car insurance – as long as the motorist keeps within the agreed good driving standards, the premium stays low.
“Our entry in the insurance market with our proven fleet management technology puts us at the forefront of a move that could help to revolutionise the motor insurance industry,” said Thomas Schmidt, managing director TomTom Business Solutions.
“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.”
However, TomTom may need to convince drivers of the merits of their black box in the car after having to apologise after selling Dutch police data gathered from customers to help them set speed traps.
The firm admitted the gaff, but claimed they did not know how police were using information bought to map accident blackspots.
“We’ve dispensed with generalisations 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,” said a TomTom spokesman.
“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 miles per gallon – the better you drive, the longer your fuel will last. It’s the same with our insurance, good drivers get more for their money and in that sense they will pay ultimately less.”