What’s the most dangerous form of driving? What do the telematics say?

When it comes to the most dangerous form of aggressive driving, speed stands above the rest as most likely to cause a crash.

Research from the University of Waterloo has found that speeding is more likely than hard braking, hard acceleration and hard cornering to cause a vehicle to crash. The university combed through 28 million trips recorded with telematics data to see that speeding led to more crashes than the other riskier behaviours. In fact, the other forms of aggressive driving were statistically insignificant when it came to collisions.

What does this mean for an insurance company? They should assess a driver’s risk based on how fast they drive.

“For insurance companies using this telematics data to assess who is a good risk and who isn’t, our suggestion based on the data is to look at speed, at people driving too fast,” said Stefan Steiner, a statistics professor in the university’s mathematics faculty.

The study now provides factual evidence that speed is a leading cause for crashes. Previously, this was just an assumption, said Allaa (Ella) Hilal, an electrical and computer engineering adjunct professor.

“Some of the results are no surprise, but prior to this we had a whole industry based on intuition,” she said. “Now it is formulated – we know aggressive driving has an impact.”

Phil Gibson, managing director of personal insurance at Aviva Canada, agreed. “This analysis and the conclusions of the researchers confirms what we’ve seen in our experience for years: drivers who speed are more likely to be involved in an accident. We (insurers) have historically used moving violations, like speeding tickets, in pricing and underwriting auto insurance, because they reflect an increase in the risk of a driver having an accident,” he told Canadian Underwriter.

There are still some unknowns, however, Steiner cautioned, such as the same vehicle being used by different drivers and that further research was needed to verify their results.

Still, the study could impact how telematics data is used by the insurance industry. Rather than judging risk based on age, location or gender, a look at a person’s driving data could determine their premiums.

Furthermore, Hilal noted, to the extent that drivers know their data is being tracked and therefore curb their risky driving behaviours, better driving could lead to better rates. “Having this information exposed and understood allows people to wrap their minds around their true risks and improve their driving behaviours,” she said. “We are super-pumped about its potential.”

Recently, insurance industry experts told Canadian Underwriter that distracted driving was their biggest concern for drivers as crashes rise. Aviva Canada said the total number of vehicles repaired was up 2.2% from 2017-18 in the provinces in which the company operates.

Blame was put on people using their cellphones while driving, as well as people being distracted by infotainment systems in the vehicles. Now compound distracted driving with aggressive behaviour and you have a potential recipe for disaster, Gibson said. “Any of those four aggressive driving behaviours (speeding, hard braking, hard acceleration and hard cornering) analyzed would be made much more dangerous if the driver is distracted in any way.”

Source: https://www.canadianunderwriter.ca/insurance/whats-the-most-dangerous-form-of-driving-what-telematics-tells-us-1004167563/

Telematics

​​​​​​​​​​Insurance telematics – also known as usage-based insurance (UBI) or pay-as-you-drive – represents a shift in how insurance is administered and how premiums are calculated. Telematics has the potential to reduce your premium costs and generate significant benefits to society.​

How to Drive Your Premiums Down with Telematics

Telematics technology customizes insurance to your pattern of driving. It works by monitoring your real-time driving behaviours to provide an objective picture of your driving habits.  

Some insurers use telematics to monitor the key risk factors associated with driving a car. The technology assesses your driving habits, including: 

  • ​The distance you drive
  • The time of day when you are on the road
  • When and how you accelerate and brake

If you exhibit better driving habits or improve your driving behaviour, you can potentially save on insurance premiums. A telematics device creates an objective, personalized profile based on specific criteria. 

How Telematics Technology Works

Telematics was first used for auto insurance in Canada by one insurer in 2013 and has since grown to be included in a number of insurers’ product offerings. The telematics program gives you a small wireless device that acts as information and communication technology that can be quickly and easily installed in your car’s diagnostic port (typically under the steering wheel). 

The data collected is subject to strict privacy policies and not used for any other commercial purposes without consent. The insurer analyzes your data solely to determine savings and assesses typically the three driving habits listed above. 

With some programs, you can then track your driving habits and savings online, have your online information dashboard updated daily, and have your telematics discount calculated monthly. 

​Telematics programs are voluntary and you are fully informed of the variables your insurer collects for use in the program. Before signing up, you provide your express, informed consent for the collection, use and disclosure of the information used by the insurer.

Other Benefits of Telematics

According to the Victoria Transport Policy Institute​ in British Columbia, widespread adoption of telematics has other potential benefits as a result of people driving less. They include: ​​

  • Reductions in congestion, traffic accidents, pollution, energy use, road and parking costs as well as more people walking instead of driving, which promotes health and fitness 
  • Opportunities for urban planners to explore other land-use objectives  

The Telematics Forecast

The number of insurers offering telematics is expected to increase. Canadian insurance companies are learning from the experiences of their counterparts in the U.S. and Europe.

In 2012, IBC conducted a survey in Ontario that found that the majority of those polled would be in favour of telematics. The option to choose telematics was most popular among people who drive less than 10,000 kilometres a year.

Source:
http://www.ibc.ca/on/auto/buying-auto-insurance/how-auto-insurance-premiums/telematics