Liberty Mutual Agency Corp.'s “Onboard Advisor” program (LMAC) offers a 15 percent discount for the first year for new members. However, ongoing discounts depend on the customer's “safety score” based on aggregated fleet data. Companies that rigorously screen prospective drivers can help reduce liability and, in turn, better manage auto insurance premiums. Each insurance company has its own list of approved telematic service providers (TSP), and each of them recommends that companies talk to an insurance representative first to see if their TSP qualifies.
How a telematic insurance plan works In addition to LMAC, which calls its insurance and telematics union “Safety-Driven Insurance”, other plans are available from companies such as Travelers, Zurich and The Hartford, which offers the “FleetaHead” program. Making “security-powered insurance” more accessible According to Robin Harbage of Towers Watson, a human resources, investment and risk management consultancy based in New York, 24 percent of commercial insurers are implementing telematic insurance programs, and another 7 percent are exploring the option. According to Carver, business owners should keep in mind that they can only save on insurance through a telematics program if they use technology to develop safer drivers. It also helps to foster a positive relationship between Liberty Mutual and its customers and will hopefully lead to safer roads.
Drivers in 16 states can currently receive discounts from Liberty Mutual based on their scores. According to Accenture Strategy, 80 percent of insurance consumers seek personalized offers, messages, pricing and recommendations from their auto, home or life insurance providers. Not all insurance companies offer telematic programs to fleets that tell fleet managers and insurance companies how safe drivers are on the road, but for those that do, the savings can be significant. While Liberty Mutual drives the innovation of telematics-based applications, there is also a demand for more flexible insurance programs with rewards and discounts based on incentives.
The information is accurate as far as Liberty Mutual knows, but companies and individuals should not rely on it to prevent and mitigate all risks as an explanation for the coverage or benefits of an insurance policy. To be eligible for a discount, which reaches up to 15 percent, a company must demonstrate that it has telematic devices in a “sufficient number of vehicles in the fleet”. As expectations for personalization and personalized offers increase, Liberty Mutual is also announcing the expansion of its new pay-per-drive insurance, ByMile, which offers lower premiums for those who drive their cars less.
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