Tracking a vehicle’s movements via GPS is nothing new. After all, companies do it all the time with their commercial fleets. And there are plenty of products out there now that allow parents to monitor their teenagers when they’re supposed to be driving to the library to study with friends.
One idea that’s been suggested for years is using GPS to lower car insurance rates. The theory is that the rate would be based on the driver’s true driving habits—courtesy of all that tracking—instead of criteria like their age, sex, and what neighborhood they live in. While such a system has been maligned—although held up in the courts here in the U.S.—companies such as Netherlands-based TomTom looks to go full steam ahead overseas starting in Europe.
To implement the program, TomTom has teamed up with Motaquote, an insurance company based in the UK. Drivers who opted to join would purchase the TomTom unit which would then suggest best routes to follow. Those who do would pay less on their insurance.
“Drivers using the insurance product will have a TomTom tracking unit fitted in their vehicles, allowing driver behavior and habits to be monitored by insurers and by improving driving style, you can drive down your premiums,” says TomTom managing director Thomas Schmidt.
Analysts have so far been skeptical about the program, which they see as another venue for the company to sell more products. TomTom’s market share has been eroding for years as consumers turn to alternative navigation systems like their smartphones. The company, besides selling its portable units, now also sells mapping data as well as built-in navigation units to automakers.
Automotive.com’s take: We wanted more details about the program and reached out to TomTom which has not responded at the time of this post. What do you think of the system? Would you allow your insurance company to track your driving habits for lower premiums? Or is that too much an invasion of privacy? As always, let us know in the comments below.
Source: Toronto Star
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