Car insurance: discounts arrive for those who drive well

Why not pay car insurance based on the way you drive, to reward the most disciplined? The novelty comes from Japan and promises to revolutionize the Bonus-Malus system.

Toyota and Aioi Nissay Dowa Insurance have devised a new sun coast insurance formula based on driving behavior. Those who drive better pay less. The system, which revolutionizes the Bonus-Malus mechanism, is about to make its debut in Japan. But how does it work in detail?

Car insurance: discounts in Japan for those who drive well

Toyota and Aioi Nissay Dowa Insurance have developed an alternative system to the Bonus-Malus to calculate car insurance. The Bonus-Malus system we are used to reward motorists who do not cause accidents but do not take into account driving behavior.

The idea developed by the Japanese car manufacturer and the insurance company is to take advantage of modern technologies to calculate highly customized premiums. Connected cars transmit information on the use and how the car is driven electronically and in real-time. In this way, it is possible to constantly monitor the use that is made of the car and arrive at a lower premium for the most virtuous drivers.

As the promoters of this innovative solution explained:

Until now, RC auto plans have focused on giving peace of mind to customers whose actions had caused road accidents. However, by providing a service that makes use of telematics technologies, Aioi Nissay Dowa Insurance aims to generate added value (active safety) for customers whose actions have not caused road accidents.

Discounts for those who drive well at the start from April

The new insurance formula was launched on January 15th and will go into operation from April. In the first period, this formula will only be tested on a limited number of Toyota cars.

Thanks to the collection and processing of data in real-time, the driver will pay a monthly premium calculated on the information recorded by the car.

In Japan, motorists are already used to paying a variable premium, because insurance policies provide for a fixed cost plus a fee calculated based on the actual use of the car. With Toyota’s initiative, the actual use of the vehicle becomes the most important parameter for calculating the cost of car insurance.

Could such a system also be useful in Italy to lower the price of car insurance? What do you think?

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