Those who have their driving behavior recorded by the motor vehicle insurer via a telematics tariff can benefit from price reductions. Consumer advocates are critical of this.
350,000 Allianz car insurance customers have a so-called “DriveDot” in their car – and it is a real data octopus: the sensor registers acceleration and braking processes, speed, routes, driving and break times as well as the time of day of the car journey and transmits the driving data using a app to the insurance company. The reason why customers voluntarily give their insurer full insight into their driving behavior is that they have opted for the “BonusDrive” telematics tariff. With the help of a points system, the driving behavior of the customers is evaluated – and those who drive particularly carefully can enjoy a discount the following year.
More and more insurers are offering their customers the option of selecting telematics tariffs for motor vehicle insurance – a total of around 750,000 drivers across Germany make use of this, according to an analysis by the consulting firm Meyerthole Siems Kohlruss. “The technology used here collects traffic-related data from the driver and the vehicle. On this basis, the insurance company then calculates an overall assessment for the last twelve months: In this way, insured persons can get up to 30 percent of their vehicle premium back after one year,” explains Peter Schnitzler, Kfz -Expert at the Ergo insurance group. “The discounts are intended to encourage drivers to adjust their driving style.” The factors and the weighting that play a role in the calculation of the vehicle contribution differ depending on the insurer. Data on driving style, speed, alertness, driving time and time of day are often included.
Sensors can also detect accidents, and the insurance company is then notified immediately
Allianz even combines an additional service promise with its “BonusDrive” tariff: The sensor can also automatically detect accidents and report them directly to the insurance company – this enables direct contact with the customer. “In this way, Allianz supports its customers at the point of damage and can discuss claims settlement with the customer,” explains Jochen Haug, Allianz’s claims director. The customer does not have to register himself.
Drivers can not only save money with telematics tariffs. Since acceleration, braking behavior and speed are also recorded, they help drivers to optimize their driving style in a targeted manner. “Anyone who drives more evenly and with foresight and sticks to the speed limits not only improves their score, but also reduces the risk of an accident,” says Schnitzler. In order not to be distracted by what is happening on the road, drivers should also refrain from making phone calls, text messages or using apps while driving. In addition, regular breaks on long journeys – at least every two hours – and avoiding driving at night increase safety, which has a positive effect on the score. “Telematics tariffs can be particularly useful for novice drivers under the age of 30,” says Schnitzler.
Support for novice drivers
DEVK Versicherung also advertises its telematics tariff with the parents’ need to protect their children from careless behavior on the road. “With the DEVK telematics tariff, mum and dad can use the app or the score value evaluated in it to assess how exemplary their child drove,” explains Alexander Erpenbach, head of the DEVK main department for property/HUK operations.
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The argument that parents can influence their children’s driving behavior in this way seems to be working: “Our data analysis has shown that the demand for telematics tariffs is highest in the 17 to 24 year olds group,” he said Erpenbach.
Consumer advocates have concerns about privacy
Providers of telematics tariffs use different options to record the vehicle data. “Many insurers offer an app for smartphones, for example. Insured persons only have to take their cell phone with them every time they drive, and the recording then takes place automatically via GPS,” says Schnitzler. “Anyone who decides to use the app also gets an overview and feedback on each individual journey,” he adds. Depending on the provider, a separate device, for example a sensor for the windscreen or a plug for the cigarette lighter, may also be necessary for data collection. So-called telematics boxes or plugs, which are permanently installed by a specialist company in the glove compartment or under the seat, for example, are also possible.
However, consumer advocates are not very enthusiastic about the automatic data transmission to the insurers: “Many of the tariffs offered are not transparent. And with regard to data protection, they should at least be treated with caution,” agrees Bianca Boss, spokeswoman for the Federation of Insureds (BdV). . The BdV therefore advises against using telematics tariffs – “especially since these are not always cheaper than the normal tariffs,” says the consumer advocate.
The Federal Association of Consumers (vzbv) warns that movement profiles can be created using the telematics apps. If you travel a lot by car, the data would reveal very precisely where you are, when and where you stayed. “The more detailed a movement profile is, the easier it is to draw conclusions about the life of the driver,” according to the consumer advocates. “This is interesting for personalized advertising, among other things.”
The term telematics means that vehicle data is recorded. In the case of car insurance, this means that the data on driving behavior is used to determine the individual risk of the driver – and in this way to be able to offer him an insurance rate tailored to his driving style. The customer can switch off the data collection – but then risks losing the bonus.
