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Spanish Companies Tackling Teen Auto Insurance Costs with Telematics

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Spanish Companies Tackling Teen Auto Insurance Costs with Telematics


February 11, 2013

By Jacqueline Lee, Contributing Writer


Teenage drivers, especially males, get slapped with high insurance premiums. No matter how well some teenagers drive, they have to pay for the sins of their peers.


In the U.S., the CDC reports that seven teens aged 16 to 19 die every day in automobile crashes. Teenage males are two times as likely to be killed in motor vehicle accidents as their female counterparts.

In Spain, the contrast is even more stark. The World Health Organization reports that Spanish males comprise 78 percent of traffic-related deaths, while females make up just 22 percent.

An innovative partnership between Telefonica and Generali Seguros may cut auto insurance costs by 40 percent for Spanish drivers. Although the program caters to all customers, it will especially benefit teen drivers.

When customers take out an auto insurance policy with Generali Seguros, the premiums are calculated first by using questionnaires and actuarial tables. Customers pay 50 percent of the premium upfront and then pay the rest of the premium in 11 monthly installments.

From there, telematics come into play. Telefonica’s (News - Alert) M2M data-transmission device is then installed in the car at a number of car service centers around the country. The device then reports on the driver’s habits to Generali Seguros, which adjusts the 11 remaining monthly premiums according to the telematics reports.

Factors influencing cost include the number of kilometers per year clocked by the customer, city versus rural driving, day versus night driving, adherence to speed limits and sudden acceleration and braking habits.

Customers can view their real-time data through either a Web dashboard or an iOS or Android (News - Alert) mobile app.

Also, if the M2M device reports an accident, emergency personnel can use location-based services to immediately find the vehicle. The insurance company calls the driver to find out whether assistance is needed.

Customers of all ages can purchase these policies, called “pago como conduzco,” at Generali Seguros branches around Spain. Teens will get a realistic picture of their driving habits, while parents will get both peace of mind and a much-needed financial break.




Edited by Braden Becker

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