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TomTom offers drivers lower insurance premiums – Pervasive Computing


Tracking device will monitor driving habits and adjust charges accordingly

Satnav manufacturer TomTom has joined forcers with insurance broker Motaquote to launch a new car insurance product that rewards safe drivers with lower costs.

Anyone that signs up to the Fair Pay Insurance service will be issued a TomTom Pro 3100 navigation device that will alert drivers when they perform activities that could potentially result in an accident such as late breaking and sharp cornering. The policy also requires a Link tracking unit which monitors the driving habits and displays them on the driver’s dashboard and in regular emails, is fitted to the device.

Initially a driver will pay lower premiums but if their driving habits are reckless they will find they are pushing their premium up themselves.

Drivers that take out the policy will be required to pay for the TomTom device and tracking kit themselves. Furthermore, the device also offers benefit from TomTom’s Live services that include accurate traffic information that is updated every two minutes.

In Conclusion:

*Insurance companies aim to make a profit, therefore these changes would generally increase costs

*It tracks your cornering and speed – this data could be used to deny your claim or reduce the payout, as their barristers would argue that you were a bad driver

*Insurance companies share data – therefore once one company knows you’re a bad driver, they will share that data amongst themselves, and your premiums will be much higher, possibly for the rest of your life.

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