One-size-fits-all car insurance rarely fits anybody!
But then again, does one-size-fits-all really apply to anything?
Every time my friends go on a trip, they return with a tacky souvenir t-shirt for me. They're always cool shirts, they always look great, but the one bad thing is - they're one-size-fits-all. I haven't been one-size-fits-all since I was eleven. I could maybe wear one of these shirts as a bandana if I was lucky. Of course, I smile and act overjoyed by the gift, pretending I don't hear them when they inevitably end up saying "Try it on, let's see!" It's frustrating, because one-size-fits-all rarely ever does.
If one-size-fits-all t-shirts don't make sense, how could anyone ever expect one-size-fits-all car insurance to ever make sense?
To figure this out, you first have to consider how most companies calculate car insurance premiums. Actuaries working for insurance companies tend to consider such factors such as a driver's age, sex, location, type of car, size of engine, past claims history and a couple of other factors. This combination of factors is examined versus a table of actual risks calculated for people with those associated factors. From the risk, they figure out what the premium for covering that client should be.
Notice something missing from how they figure out car insurance premiums?
Check again, it stands out.
What's missing from how most insurers calculate car insurance is that it has little to do with how driver actually drives.
That's MADNESS right?
Sure, it includes claims history, but all that tells you is whether that person was involved in an accident or not - they may not even really be at fault. It has little to do with how the driver actually drives.
And here's another thing, the actual risk (and associated premium) is based on out-of-date statistical data culled from a generalized population. It has very little to do with reality.
Consider 2 twin sisters that live together in the same house and drive the exact same type of car, covered by the same insurer. Statistically, according to how car insurance is calculated, they should have the same risk of accident (and thus the same premium paid). The reality is, one sister could be a perfect driver while the other one is horrible. Is it fair that they both should pay the same?
Under one-size-fits-all insurance, they technically should pay the same premium.
But it doesn't have to be that way.
Companies like Baseline with their Behaev insurance solution use telematics to record a driver's actual behavior while driving. Behaev keeps a record of a driver's actual driving behaviors and keeps track of bad driving habits such as hard braking, speeding, over-accelerating and distracted driving as well as actual trips/distance driven. From this data, Behaev can calculate how safe a driver someone actually is by generating a Behaev safety score.
Behaev has associated insurers who are in the process of using this data that is timely and personalized to calculate the true risk of setting premiums that will properly cover a client.
By using this data, Insurers can finally offer Usage-Based-Insurance that is based on actual distance traveled (Pay-As-You-Drive) or how safe they drive, a rebate based premium based on how safe the driver drives (Pay-How-You-Drive).
With great insurance solutions such as Behaev, drivers are no longer slaves to car insurance premiums based on ancient and unreliable data as they have for way too long.
With insurance solutions such as Behaev, insurers now know the real risk of covering a driver. They can set premiums that properly cover this risk. They have the possibility of offering their clients usage based insurance.
For drivers, they can get fair & affordable insurance premiums. They can get car insurance based on their real driving behaviors rather than depend on one-size-fits-all-insurance like they do now.
With Behaev, you no longer have to depend on one-size-fits-all solutions, it's all about you.