Vehicle tracking technology has been around for a while, and has mainly been used for fleet tracking and theft recovery. Recently vehicle tracking has started becoming increasingly popular, especially in the insurance industry where it is changing the way premiums are calculated. However, better insurance premiums and vehicle recovery are not the only ways in which consumers can benefit from vehicle tracking.
Usage based insurance
The insurance industry has played a big role in the upswing in popularity of tracking technology. Usage-based insurance, or UBI, is a way in which insurance companies track the driving behaviors of customers and determine their premiums accordingly. In short, the better, and safer, you drive, the lower your premiums. This breaks away from the traditional way where premiums are calculated on general statistics using predominantly age and location, and instead focuses on you as an individual.
While different insurers have different programs, they usually look at things like how fast you drive (according to speed limits), how you brake and accelerate, how you take corners, where you drive, how far you drive, and what time of day you drive. All of this data determines your risk profile and as a result your insurance premium. Most insurers use a tracking device that’s also linked to a smartphone app which you can use to see how you’re driving. You can use this information to improve your driving behavior.
One of the biggest concerns of UBI is data privacy. What information will insurance companies collect, how will they use it, and how safe is it? This is a legitimate concern as there are very few, if any regulations that govern what companies can collect, how long they can keep it, and whether the data could be used by law enforcement or in accident-related court cases. The reality is that in most cases drivers aren’t fully aware what happens to their data once it’s collected. The popularity of another technology, however, is changing that. Companies such as VINchain employ blockchain technology when collecting data with their on-board diagnostic (OBD) device. With blockchain technology you are in complete control of your data, and know exactly what data is being collected, who has access to it, and what is being done with it.
While VINchain’s OBD and connected mobile app can be used to track driving data for insurance purposes, it’s not the only benefit. Driving data can also be used to determine wear-and-tear on your vehicle and let you know when a problem is imminent, or when a part needs to be serviced.
Vehicle tracking allows you to become a better driver, leading to better premiums with insurers, but that’s about the only reward you’ll get from them. Tracking your vehicle with VINchain’s OBD, however, rewards you for every single piece of data collected. Every time you add data to the blockchain, you earn VINtokens, a form of payment that can be used for everything from discounts on vehicle history reports to car services and repairs. What’s more, you not only get rewarded when you provide data, but also every time someone requests your vehicle’s data, such as insurance companies. In this case you get rewarded for providing the data, letting the insurance company use the data, and a lower premium as a result (if you’re a good driver).
Vehicle tracking is going mainstream with many applications that can benefit you as a consumer. However, while there are concerns surrounding data privacy, technology such as blockchain is not only making it safer, but also more rewarding to track your car.