Telematics deployment took another step forward in Ontario, as ingenie announced it is offering its product to drivers age 16-24.
“Traditionally, young drivers have been discriminated against and treated as a high risk by the insurance industry. ingenie is all about providing auto insurance specifically designed for young drivers,” says Richard King, ingenie founder and CEO. “We help young drivers develop a good driving style, then reward them for how they actually drive, rather than treating them as a statistic.”
According to an ingenie survey, 80 per cent of young drivers in Ontario say it's unfair that young people pay higher car insurance rates. With yesterday’s announcement, ingenie hopes to change that attitude with its Good Driving Discounts plan.
In the U.K. where ingenie has been available since 2011, the approach has reduced young drivers' risk of having an accident during the first six-months of driving by 40 per cent. Seventy per cent of ingenie's U.K. drivers earn discounts for safe driving.
Other Ontario insurers offering telematics-based insurance include Desjardins,
Intact, The Co-operators, and CAA South Central Ontario.
Aviva Canada also offers telematics through its partnership with Quindell and the Independent Broker Resources Inc. in an exclusive five-year deal.
Young drivers insured by ingenie install a Smartbox in their car, which builds a picture of their driving style based on indicators such as speed, acceleration, braking and cornering. Customers receive feedback on their driving every 10 days through the ingenie app or online at ingenie.ca. The feedback includes a driving score out of 100, tips on how to improve their driving and the amount they are on track to save through their Good Driving Discount.
“This regular feedback and financial incentive can reduce insurance costs and is proven to help young drivers develop safe driving habits,” says King. “In fact, in the U.K., over 90 per cent of drivers regularly engage with their driving feedback to see how they're driving, find tips to help them improve and check how much they're on track to save.”
Compared to traditional insurance models where drivers would have to wait until the end of the year to see a discount, with ingenie young drivers can earn their Good Driving Discount three times a year – up to 25 per cent off a year in total. This helps to overcome the biggest hurdle between young drivers and car ownership; young drivers in Ontario say the cost of insurance is the biggest barrier to owning a car (60 per cent), even more so than the up-front cost of buying a car (54 per cent).
“They are safer drivers as a result and proven less likely to be involved in a collision," says King. "We're excited to launch in Ontario as we are confident ingenie can reduce the number of young drivers involved in accidents and help make their auto insurance more affordable."
