Pay As You Drive, Usage Based Insurance or Pay Per Use are insurance models that evaluate drivers individually and classify them based on their driving habits. The target groups include all drivers which make it difficult for insurance companies to calculate their risk. Young drivers are at the highest risk of having an accident on the road. However, older drivers and low mileage drivers are also part of this target group.

In addition to the classic features such as regional classes and age, the rates for the Pay As You Drive model are based mostly on mileage, speed, road type and travel time. The collection and transmission of data from the insurer is currently being done by the use of on-board devices which send the current positions and vehicle information over a mobile network to a location server.  The disadvantages of such built-in system are the purchase cost, installation and maintenance.

As an alternative, mobile devices can also be used. The phone itself represents the most efficient tracking system: High costs for hardware, SIM card and installation are eliminated. Moreover, this technology can be changed by the driver to another and is not restricted to a particular vehicle.

Pay As You Drive provides a classic Win-Win situation

• The insurer guarantees Pay As You Drive a risk selection as well as a risk-rating. In addition, Pay As You Drive will increase the interest of its customers to be aware of their driving behavior and provides valuable information in case of an accident.    
• The customer benefits from individual customs rates. For the first time, the customer also has the opportunity to control the amount of the premium and also benefits from the versatile services being offered by the use of this technology.   

Based on the telematics platform SPACE Tracker- which provides the technical basis for the EU eCall system and 15 years of experience in successful IT consulting projects in the insurance market, nobisCum offers the insurer innovative worldwide Pay As You Drive solutions. 

The SPACE Tracker Pay As You Drive solution offers insurance companies a highly efficient and immediately operable pilot system since high investment costs for the development and operation licenses can be eliminated.