We’re excited to announce that we’ve partnered with Noblr, one of the hottest new auto insurance companies. Noblr’s goal is to create a community of safe drivers by rewarding good driving habits. It was born out of insurance expertise – its co-founder and CEO is Gary Tolman, former CEO of Esurance, and its other co-founder and chief product officer is Jason Foucher, former VP of insurance product at Metromile. They’re using TrueMotion’s platform to understand their members’ driving behavior. They use this driving behavior data to price insurance – based on how much and how well a person drives. Noblr estimates that good drivers could save up to 51% on their insurance premium.*
What makes Noblr truly exciting isn’t that it’s pricing insurance based on how people drive. We work with 10 of the top 20 insurers in the US to do exactly this (and more). What’s exciting about Noblr is the way they’re creating a community of safe drivers.
Typically, the way usage-based insurance works is that a customer will download an app or install a hardware device to monitor their driving behavior for a set period of time – usually 3 to 6 months. The monitoring period is designed to deliver enough driving data for the insurer to make an actuarily sound risk assessment. What this means is that each individual trip doesn’t matter as much as the person’s driving trends in aggregate. After the monitoring period is over, the driver’s score is set. They get your discount (or surcharge in some cases). And, they go on their merry way.
In many cases, this is where driver monitoring stops. But you have innovators like Intact – Canada’s largest auto insurer and a TrueMotion partner – who engage in always-on monitoring. Always-on monitoring allows an insurer to provide value beyond a simple premium discount. They can offer crash assistance, a better claims experience, and rewards programs. That said, after the initial driver monitoring period, the premium will typically stay the same until renewal.
Noblr’s model takes engagement a step further. With Noblr, you have a fixed rate that you pay every month – which is what most insurance models do. But then, Noblr also has a variable monthly rate that’s based on how much and how well you drive. With TrueMotion’s technology, Noblr is calculating a driver’s pricing in real-time using their smartphone. In practice, this means that if a driver has a great month behind the wheel, they’ll likely pay less the following month.
This is a dramatic shift in how drivers perceive their auto insurance premium. For most people, their auto insurance premium is a static number, something you can affect once a year – even if you’ve done a UBI program. Noblr’s approach keeps drivers constantly engaged and incentivized to drive safely.
Noblr has made distracted driving part of its four core pillars for its safe driving community. This focus on distracted driving sets Noblr apart, even among the new auto insurance entrants. For example, Metromile’s core innovation is its variable rate based on how many miles you drive per month. It ships you a hardware device to track mileage, but it doesn’t include distracted driving. Like Noblr, Root is all smartphone all the time, but it doesn’t include distracted driving in its core driving behaviors. Instead, it focuses on standard driving behaviors like braking, time of day, and smoothness. And unlike Noblr’s variable rate, Root’s rate remains the same throughout the policy period.
In addition to distracted driving, which Noblr calls focus, Noblr analyzes three other factors. Smooth driving measures how often a driver slams on the brakes or accelerates quickly. It looks at road choice to encourage drivers to take highways over back roads. It also tracks the time of day when drivers are on the road – because driving between 11:00 PM and 4:00 AM is statistically more dangerous.
Noblr is available today in Colorado with plans to launch in other states in the coming months.
*Potential savings estimate is based on a sample risk profile of 1 driver/1 vehicle compared to a leading auto insurer’s rate without a telematics discount.
TrueMotion’s Growth team builds usage-based insurance products for top insurers. They work with our customers to design innovative programs that…
June 26, 2019