DriveFactor Offers New Auto Insurance Programs

By Sujata Garud
TMCnet Contributor

DriveFactor, which was earlier known as Crimson Informatics (News - Alert), has launched new auto insurance programs. This newly introduced program will allow insurers to effectively rate driver performance based on safety and driving habits through mobile technology and informatics. Users of DriveFactor’s new auto insurance programs can save up to 50 percent of their car insurance as they expand new usage-based insurance (UBI) and telematics programs.

DriveFactor offers a combination of hardware, information services and analyst and scoring for insurance companies to help them assess risks using telematics or usage-based insurance. DriveFactor provides consumers the ability to set up a unique DriveFactor Score, which reveals a driver’s safety and driving habits. Consumers who score the maximum DriveFactor Scores may be awarded with large discounts on their auto insurance premiums. The company is eyeing to become the most widely trusted source of driving data globally. At the same time,

In order to accommodate the positive consumer feedback in the US, insurers like Progressive, Allstate, and State Farm are increasing their usage-based programs. The technology is also gaining popularity among insurers in the US and abroad.

In a press release, Steve McKay, CEO of DriveFactor, said, “With DriveFactor, we’re giving the auto insurance market more flexibility to expand usage-based insurance, reduce adverse selection, and reward safer drivers.”

McKay spoke at the National Association of Mutual Insurance Companies (NAMIC) Personal Lines Seminar, which was held at Disney’s (News - Alert) Yacht and Beach Club Resort in Lake Buena Vista, Fla. McKay’s presentation, entitled “Implementing a Telematics Program” addressed the operational difficulties of implementing a great telematics program.

McKay continued in a press release, “This is a mutually beneficial solution for insurers and policyholders, who are seeking cost-effectiveness and cost savings, respectively. Usage-based insurance is simply too powerful relative to other factors to be ignored. DriveFactor can help insurers gain a competitive advantage quickly, and make it easy for safer drivers to save money.”