Insurance Technology Featured Article

Liberty Mutual and Subaru Launch Monitor Driving Habits with Usage-Based Insurance App

By Frank Griffin
Contributing Writer

Traditional auto insurance prices are based on  a wide range of data sets which are used to create rating factors based on driving record, location, age, marital status and other information. Based on all these and other data, the customer pays a premium, which may include discounts because of the decreased liability they provide to the insurer. The new collaboration between Liberty Mutual Insurance and Subaru has been created to help drivers lower their premiums by giving them access to information about their driving behavior so they can improve any bad habits.

Usage-Based Insurance (UBI) is an innovation made possible because of the current development in information and communications technologies (ICT). The combined technologies of the vehicle’s telematics and smart mobile devices allows insurers to monitor the behavior of drivers while they are driving. By looking at where the vehicle has been through GPS as well as acceleration, breaking, hard cornering and airbag deployment, insurers can now get a more accurate picture of the individuals they cover and adjust the premiums accordingly

Liberty Mutual and Subaru are going to deploy the RightTrack in-vehicle app, which is powered by Clarion Smart Access, for a UBI that is going to use SUBARU STARLINK cloud platform. According to the insurance company, it will save drivers money on their insurance as well as make them much safer on the roads.

The solution will provide real-time driving feedback by making the information available on the driver’s smartphone. This includes coaching based on the current driving behavior the customer is exhibiting. When he or she speeds, brakes suddenly or makes any erratic moves, they will receive a report. Drivers that want to lower their insurance premium can take the appropriate action based on the recommendation of the app.

For vehicles other than Subarus with the STARLINK cloud platform, they can use the RightTrack device that plugs into the Onboard Diagnostic (OBD-II) port in the vehicle. After it has been installed, users receive a confirmation via an email within 48 hours after the first trip letting them know it has been activated. While this device doesn’t have many of the features of Clarion Smart Access solution, it delivers the required information for Liberty Mutual so you can start lowering your insurance premium.

"We are excited to bring this innovative offering to market," said Hamid Mirza, auto product manager, Liberty Mutual Insurance. "This partnership combines Liberty Mutual's extensive experience and reach in usage-based insurance with Subaru and Clarion's cutting-edge connected car technology to bring RightTrack savings to consumers in new ways."

Liberty Mutual said, Subaru drivers will be eligible for savings through its RightTrack UBI.