Ready to pay less … but can you see it with a slight rotation of the wheel?

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If you agree to be monitored by your car, you can pay much less for car insurance … In the United States, Tesla wants to revolutionize the insurance world based on real-time analysis of driver data.

This is a lesser-known activity in Tesla: its “Tesla Insurance” branch. Launched in 2019, it is gradually rolling out in the United States, but not yet in France. Its characteristic is that it is completely based on the individual behavior of the driver.

Specifically, the amount of insurance premiums fluctuates every month according to the “safety evaluation”. This depends on many parameters recorded in real time by the car, such as the number of sudden brakes, triggering an alert collision, cornering, etc. Depending on your driving, whether you respect safe distance or not, it’s fast. The result is a perfect score of 100, and the higher the score, the less money you will pay.

With an intriguing promise: The average driver can save 20-40% on their premiums. And up to 60% cheaper than classic insurance for the best drivers. Another advantage of this new generation insurance is that no other criteria are taken into account. It does not take into account the driver’s age, gender, or any accidents he may have already experienced. Only the quality of driving is important. A completely objective standard. Even if it casts doubt on the insurance principle itself, it goes against one of the basic insurance principles, the risk pooling principle.

Insurance based on driver behavior already exists in France.

We call it “pay when you drive” or “pay how you drive” or “pay when you drive”. Even if some insurance companies like Allianz and direct insurance have started offering them, they are very rare so far. A small box is provided, which is a kind of snitch for attaching to the glove box. However, these devices primarily take mileage into account. In other words, the less you drive, the less money you pay, and criteria such as driving flexibility are taken into account.

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Everything is highly supervised by CNIL. The advent of connected cars such as Tesla is a computer with wheels that collects a significant amount of data. The car knows everything about the driver, so you can check your driving very closely and adjust the price very accurately.

Insurance companies will adapt to this new situation while waiting for self-driving cars to completely replace their cards. Some insurance companies are also starting to create specific contracts.

Do the same for health insurance?

It also takes us to a world that is increasingly informed that we will pay less. This applies to cars, but also to health insurance. And here we touch on a very delicate theme. In France today, complementary health prices cannot change according to the insured’s behavior. The GDPR also prohibits the processing of health data. But how long?

In a world that seeks to reduce budgets as much as possible, it is any other solution. In the United States, some insurance companies rely on connected objects. If you follow enough steps during the day or jog during the week, your insurance will automatically drop.

Companies offer activity tracker bracelets to employees to reduce mutual health insurance or, if they make good use of them, offer movie tickets and flight vouchers. For businesses, that’s all good. Better employees and savings. In the face of purchasing power constraints and rising inflation, this “earn a few euros for a little oversight” transaction could become more and more popular among consumers.

Anthony Morel (edited by JA)