Reduce the cost of young driver auto insurance
Posted 08-04-2015 at 07:29 AM by DavidRaonic
Eighty per cent of young drivers in Ontario say it's unfair that they are paying higher car insurance rates. When asked what the biggest barrier was to owning a car, they said it was the cost of insurance (60%), even more so than the up-front cost of buying a car (54%).
Taking the side of young drivers, a new auto insurance provider, ingenie, is tackling the problem with an innovative approach. It is designed for drivers aged 16 to 24 to help them become better, safer drivers and reward them with discounts for good driving.
“Traditionally, young drivers have been discriminated against and are treated as high risk by the insurance industry,” says Lorie Phair, CEO of ingenie Canada. “We provide auto insurance specifically designed for young drivers. We help them develop a good driving style, then reward them for how they actually drive, rather than treating them as a statistic.”
Young drivers insured by the company install a 'smartbox' in their car, which builds a picture of their driving style based on indicators such as speed, acceleration, braking and cornering. Drivers get feedback every 10 days and a score out of 100. They also get tips on how to improve, along with an update on 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 develop safe driving habits. In fact, in the United Kingdom where ingenie has been available since 2011, young drivers insured by ingenie are 40% less likely than the average to be in a collision during their first six months on the road.
“Our approach helps young people become safer drivers and is proven to reduce the likelihood of being involved in a collision,” says Phair. “We're excited to insure young drivers in Ontario as we are confident our approach can reduce the number of young drivers involved in accidents and help to make their insurance more affordable.”
Taking the side of young drivers, a new auto insurance provider, ingenie, is tackling the problem with an innovative approach. It is designed for drivers aged 16 to 24 to help them become better, safer drivers and reward them with discounts for good driving.
“Traditionally, young drivers have been discriminated against and are treated as high risk by the insurance industry,” says Lorie Phair, CEO of ingenie Canada. “We provide auto insurance specifically designed for young drivers. We help them develop a good driving style, then reward them for how they actually drive, rather than treating them as a statistic.”
Young drivers insured by the company install a 'smartbox' in their car, which builds a picture of their driving style based on indicators such as speed, acceleration, braking and cornering. Drivers get feedback every 10 days and a score out of 100. They also get tips on how to improve, along with an update on 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 develop safe driving habits. In fact, in the United Kingdom where ingenie has been available since 2011, young drivers insured by ingenie are 40% less likely than the average to be in a collision during their first six months on the road.
“Our approach helps young people become safer drivers and is proven to reduce the likelihood of being involved in a collision,” says Phair. “We're excited to insure young drivers in Ontario as we are confident our approach can reduce the number of young drivers involved in accidents and help to make their insurance more affordable.”
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