Drive Smart Insurance based on driving habits

Bajaj Allianz has launched a new car insurance program named Drive Smart, which will decide the price of insurance renewal premium based on your driving habits. The company will be making use of telematics (long-distance transmission of information) to source data about your driving behavior.

Under the current system, insurance is priced based on four factors - make, model, location, and year of manufacture. However, Bajaj Allianz now aims to take into account the manner in which a vehicle is driven, in order to price the insurance depending on the risk factor. Through this new way of pricing insurance policies, they hope to incentivize good drivers.

Every customer who opts for the Drive Smart Insurance package will be given a device that plugs into the car's OBD (On-Board Diagnostics) port. Since the device works on OBD II ports, it will be compatible with every car manufactured after 2010. This OBD device then connects the car to the owner's smartphone. This will not only help the company to study the driving characteristics of the car during insurance renewal, but will also provide real-time data to the car's owner. The OBD device will detect sudden accelerations, harsh braking, or any major impact, and will alert the owner through the smartphone app.

Additionally, customers will even have an option to request roadside assistance through the app, in case of an accident. The app has various other features like a digital wallet, geo-fencing and vehicle tracking.

The company is also planning to bring out a 'pay as you go' insurance plan that will price insurance renewal depending on how frequently a car is driven. This will help those who rarely drive their car, but need to pay the full insurance amount under the current renewal method.

The company is also planning to bring out a 'pay as you go' insurance plan that will price insurance renewal depending on how frequently a car is driven. This will help those who rarely drive their car, but need to pay the full insurance amount under the current renewal method.

The policy is currently available only for cars. Drive Smart Insurance claims that customers can save up to 30% on the insurance premium at the time of renewal, based on their good driving habits.

Source:[https://www.team-bhp.com/news/bajaj-allianz-drive-smart-insurance-based-driving-habits]

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