Telematics Smartphone App Lands in Canada

A new app might turn the smartphone from a hazard into a driving instructor.

Kanetix.ca has launched DriveSmart, the first app in Canada that helps drivers gauge if they would benefit from usage-based insurance programs, which collect data to provide safe drivers with auto insurance discounts of up to 25 per cent.

“With our app, drivers get a taste of how usage-based insurance works.” says Andrew Lo, chief marketing officer at Kanetix. “The app will grade their driving skills similar to how car insurance companies measure drivers for UBI discounts. This will give drivers a sense for how their driving skills stack up, and a chance to improve their skills to maximize their savings.”

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The app, available for Apple and Android devices, comes just after Aviva announced that its app, Aviva Drive, helped reduce premiums by an average of $186.

A recent Kanetix survey found that only 18 percent of Canadians were aware of UBI but 62 percent were willing to use it if it meant saving on auto insurance. (An incredible 69 percent of those surveyed said they would drive more safely if they knew they were being monitored.)

The app grades a driver’s style on several components considered in a UBI program: acceleration, braking, and handling. Drivers will be given a score for each, plus tips for improvement if necessary. (The app also takes into consideration speed, time of day, and trip duration.)

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The overall score will let the driver know whether joining a usage-based insurance program could help them lower their premiums.

The app runs in the background and automatically detects when the user start driving. It’s hands-free, so there’s no need for drivers to check their phones while driving—in fact, their scores will take a hit if they do.

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This story was originally published by Canadian Insurance Top Broker.