Tom Tom has decided to get into the insurance game, but not by offering policies. The GPS company has partnered with insurance broker Motaquote for a new venture called Fair Pay Insurance. Tom Tom will be providing the technology behind the new product, which will base its insurance premiums on how well you drive instead of typical baselines like age, gender, and profession.
Those who sign up for the plan will be issued a Tom Tom PRO 3100 satnav system that has been specially developed to display tracking information and tell users when they are driving in a way that might raise their premiums, like when they turn a corner too sharply or brake late. A link device is also fitted to the vehicle to track driving information, which is regularly displayed on the GPS unit as well as in emails. Drivers who enroll in the program will be required to pay for the Tom Tom unit as well as Tom Tom’s GPS service, but they will have access to all the usual features, including live traffic updates every two minutes.
The idea here, much like the popular Progressive ads, is that maybe you’re a better and safer driver than your demographics would indicate, so if you let the insurance company track your driving, you might end up paying much less. We’ve seen the tracking before, but never anything that would actually tell drivers when they are making potentially problematic mistakes. It’s definitely a risk to take, but if you’re confident that you’re a safe and good driver, you might be able to get lower premiums and Tom Tom navigation service in one package.