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Problem: lump-sum up-front car-insurance that fails to take into account how much customer drives, and other risks. Potential solution: Car insurance by the m
by gravitycop 18y ago
Problem: lump-sum up-front car-insurance that fails to take into account how much customer drives, and other risks.
Potential solution:
Car insurance by the minute/mile with instant-update rates based on:
* steering and pedal input
* time-of-day/day-of-week
* location
* speed
* acceleration data
It's a $200 billion market (US only). http://www.ohioinsurance.org/factbook/2006/chapter1/chapter1_f.asp http://www.ohioinsurance.org/factbook/2006/chapter1/chapter1...
With payment by the minute/mile, customers would instantly be rewarded for driving less, driving more-safely, and driving in safer conditions. Ceteris peribus, insurers would have lower claims costs, and drivers would have lower insurance costs. Everyone wins. No one loses.
- vyrotek 18y agoI believe http://inthinc.com/ http://inthinc.com/ and http://tiwi.com/ http://tiwi.com/ are trying to do just that :)
- gravitycop 18y agoTiwi is an insurance company? Is Inthinc an insurance company?
- vyrotek 18y agoNo but they are working with existing insurance companies to do exactly what you described. I'm not sure if its written out anywhere on their site or not. A coworker does contract work for them and told me about it.
- johngunderman 18y agoThe issue with this is common with all insurance. As we approach perfect information, the price becomes such that it is equal or greater than the value of any accident that may occur, which defeats the purpose of insurance. In my mind, the solution is to abandon traditional insurance and instead create a tax-free holding account where people can put aside money for critical accidents only. All else should come out of pocket. Of course, you do have a good point about your idea improving driver safety.