A new report from DriveScore highlights the transformative benefits of mobile telematics and personalised driving data for both insurers and drivers.

Based on over one billion miles of driving data, the report 'The Role of Mobile Telematics in Differentiating the Best (and Worst) Drivers' reveals that a driver’s DriveScore is highly predictive of their likelihood of having an accident. The findings show the worst 10% of drivers are six times more likely to crash than the best 10%. 

The analysis also shows that young drivers with high driving scores are significantly safer than their peers, challenging the stereotype that all young drivers are high-risk. 

Powered by Cambridge Mobile Telematics (CMT), DriveScore utilises smartphone telematics to measure factors such as a driver’s acceleration, braking, cornering, speed and phone distraction. The app runs in the background and builds a personalised picture of an individual’s driving behaviour and their corresponding risk-profile, calculating a “DriveScore” from 0-1000. 

Rather than relying on statistical averages, DriveScore brings personalised driving data to the forefront of the car insurance underwriting and pricing process. Unlike traditional black box policies, DriveScore provides users with control over their driving data, creating a free, sustainable model for insurers to harness the benefits of telematics without significant investment. 

Insurers can potentially lower claims handling expenses by avoiding the worst drivers and targeting more profitable business. While growing fast, the relative immaturity of the market is an advantage in terms of creating new pricing models and increasing sophistication at low cost and relatively low risk.  

The fact that a user’s DriveScore is a very powerful predictor of their likelihood to have an accident has major implications for the car insurance industry, with providers now able to identify better drivers when making a pricing decision. There is no better evidence of driving risk than actual driving data at point of quote, and that is what DriveScore can now deliver at scale. 

DriveScore users are safer than the general driving population due to self-selection. Approximately 75% of DriveScore users have a driving score of 750+, which is the base score which drivers need to qualify for cheaper insurance. 

The car insurance industry is ripe for disruption, and smartphone telematics can now push the boundaries of underwriting. Traditional telematics, such as black boxes, work very much for the insurer, whereas at DriveScore, we are now ensuring that it works for both sides of the market.