’As technology advances with connected cars, the accuracy of the personalisation for car insurance premiums will only improve,’ says head of retail specialty trading

In the rapidly evolving landscape of motor insurance, a paradigm shift is underway as connected cars insurance products usher in a new era of personalised premiums.

Matthew Washer, head of retail specialty trading at Aviva, explained to Insurance Times that motor products with connectivity now consider individual driver behaviours, moving away from reliance on conventional risk assessment factors such as vehicle type, age and location.

By leveraging data collected via tracking technology, insurers are able to offer reduced premiums to certain customers that represent lower risks.

Connected cars are vehicles that are able to connect to an external network, such as to the driver’s phone via Bluetooth.

They also come with inbuilt sensors that can track a motorist’s speed, location and driving habits.

According to Confused.com, they add “more data points and analysis, such as diagnostics and characteristics like driver heart rates”.

Washer added: “Technology has moved on [from traditional black box telematics insurance policies] and [connected car insurance products] allow drivers to monitor their driving without the need for a black box to be professionally fitted to their car.”

“As technology advances with connected cars, the accuracy of the personalisation for car insurance premiums will only improve.”

Safer driving

Washer further explained that “from an insurer’s viewpoint,” connected car insurance products allowed insurers to pinpoint and assist drivers exhibiting “risky” behaviour.

Aviva launched Quotemehappy Connect in 2002, an app-based insurance product that rewards safe driving behaviour with e-vouchers and premium discounts.

The insurer said the product was aimed at drivers aged between 17-29 and provides a weekly driver rating alongside a breakdown of the policyholder’s driving behaviour.

Washer explained: “This was cocreated with customers to specifically cater for the needs of this age experience cohort.”

He added that by utilising an app and a windscreen device to record driving behaviours, Aviva could identify areas for improvement and provide personalised feedback to customers within their app.

“Within the Quotemehappy Connect App, we demonstrate the likely impact on the customers renewal throughout their policy, giving them an incentive and target to achieve,” he explained.


Washer noted that while traditional telematics products “typically punish poor driving,” driving data could also be used to reward drivers who did not exhibit “risky” behaviour.

In turn, Washer explained that this could encourage a “safer driving environment.”

For example, driving behaviour is broken down into different coloured ratings – red, amber, green or gold – with green or gold rated customers able to exchange reward points for vouchers.

Those policyholders rated as either red or amber can also be provided with personalised advice on how to improve driving behaviour.

Renewal prices will also be impacted by driving behaviour, with gold rated policyholders able to access up to 30% discounts on their premiums.