Branded UBI Works for Consumers, Hyundai Claims
Hyundai branded usage based insurance (UBI) is said to be attracting US customers with the promise of big savings on annual premiums.
The automaker cites the uptake of its Hyundai Blue Link program employing on-board telematics data to monitor driver behavior, encouraging safe and efficient driving habits and “potentially save owners hundreds of dollars on their auto insurance”. The scheme works in league with data analytic provider, Verisk, which then shares individual driver scores with partnering insurers to accurately assess the risk of cover.
The automaker is hoping take-up will help promote sales of its latest models, including the new Elantra and Tucson, to a younger tranche of car buyers who may otherwise face punitive auto insurance premiums. Those who sign up to the program can now access a new Driving Scoreiii tool, available through Hyundai Blue Link. The new feature provides a personalized driving score and safe driving recommendations developed by Verisk through examination of key driving characteristics that have a proven correlation with insurance losses, including smooth driving, speed responsibility, driving time of day, consistent driving and time behind the wheel.
The driving score is calculated each week and ranges from 0-100, worst-to-best. Tips are provided on MyHyundai.com for owners to improve their driving habits, become safer drivers, increase fuel economy and improve their driving scores. For example, a driver could improve their score by braking smoothly, less late night driving and accelerating gently.
Drivers of Blue Link connected Hyundai vehicles can share their driving habits to potentially earn instant behavior-based premium discounts from US auto insurers that connect to the Verisk Data Exchange. The Exchange is one of the largest of its kind with more than 240 billion miles of driving data from consenting drivers.
“As demand for more transparent auto insurance pricing grows, usage-based insurance is a powerful way for Hyundai drivers to have greater control over their insurance costs,” said Manish Mehrotra, executive director, digital business planning and connected operations, Hyundai Motor North America. “Providing our drivers with engaging tools that can promote safer driving habits and unlock new insurance discounts is awesome. Our owners expect this kind of technology and want to pay the right amount. No one wants to pay more than they actually should.”
— Paul Myles is a seasoned automotive journalist based in London. Follow him on Twitter @Paulmyles_
