Could Your Phone Tech Get You Cheaper Car Insurance?

Wed 25th Aug 2021

A major new disruptor to the car insurance market is promising more affordable car insurance by utilising the sensor technology hidden within mobile phones.

Cuvva, who are offering short-term motor insurance policies on a monthly basis, estimate that drivers could save up to a third on their premiums by driving more sensibly and being rewarded with a cheaper policy.

By using the sensors within a mobile phone and machine learning, it’s expected that the Cuvva app will be able to monitor driver behaviours in much the same way that ‘black box’ telematics help young drivers keep insurance costs down. The app is said to be able to monitor braking, cornering and acceleration and is also perfectly placed to ensure that there is no phone use while driving - a major cause of accidents.

“Millions of drivers are overcharged by insurers with premiums largely based on factors like job titles and postcodes that have nothing to do with the way you drive,” said Cuvva chief executive Freddy Macnamara.

“Companies often collect data for their own use but if people can benefit hugely from seeing and understanding their own journey insights, sharing it with them is the obvious way forward.”

The technology can be used on most mobile phones with the latest software updates, with the monthly insurance premiums available to anyone aged 19-65, though those under 21 will have to demonstrate more than one year of no claims. The insurance premium is calculated based on your driving style, with a final score out of 100 and a smart pricing premium offered after 125 miles of driving. 

Cuvva say that the technology is so sophisticated that it can tell if you are driving in the car or are a passenger.

And Macnamara said that drivers won’t be punished for one bad day behind the wheel: “Over time Cuvva plans to offer people a host of insights in the app like coaching and even help drivers understand their environmental impact from the way they drive, offering tips to reduce their own emissions and save on fuel,” he said.

“Basing a premium on a few trips is unfair because bad days behind the wheel are inevitable. 

“The more you drive with smart pricing, the more we learn what kind of driver you are and can price you fairly.”