Insurers like to ask you where you park your car at night as a means of hypothesizing the risk of having your car stolen and the accident, based on the risk profile of the area you live in. This is not always a true reflection of the risk associated with the parking space because, for example – if you park on the side of the road, the risk won’t equal when you park in a yard with improved security detail, even if the two parking spaces are next to each other.
One of the more common questions insurers ask new clients is where they stay, which some clients may not be too fond of. This is not a question you have to worry about answering when you insure your car with digitally-based MiWay Blink, though. This is unique to the insurer rather than being unique to digital insurers.
The car’s regular overnight location is assessed by traditional motor insurers. Premiums are then calculated based on the level of security risk associated with the area.
The question is then, ‘Why is your place of residence such a big thing in traditional car insurance but not for a digitally-based insurer like MiWay Blink, and how did the unique filling of this gap in the market come about?’
To answer this question, it’s important to point out that technology is constantly changing the face of motor insurance. The changes are welcome because they make it relatively easier for both you and the insurer to insure your car.
Tech advancements are at times key differentiators in the market, and in this case MiWay Blink not asking you where you park your car is a unique feature on the insurer’s part, as other insurers would ask you for this information. MiWay Blink still uses other sources to get an idea of where your car is, further showcasing the capabilities that digital tech is unlocking for your convenience, as the end consumer.
Digitally-based car insurance involves connecting you, the car and the insurer through telematics.
Basically, a device involving a GPS system, a SIM card, motion sensors and analytics software is fitted into your car and through an app on your phone. This technology reads the driving speed and distances, as well as location and time.
Should there be a need, the insurer is then able to locate the car through this technology. This basically means it is unnecessary for you to tell the insurer where the insured car is at any point, or even where it will be based in future.
Head of MiWay Blink, Keletso Mpisane says, “If you move from one city to another, with us, you don’t even have to update that you’ve moved
“Our aim is to make our customers’ lives as easy as possible, so we never ask for your place of residence, we instead use tech to better understand and manage your risk.”
She says, “Although telematics is a large part of why we don’t ask for a place of residence, we do use information from other sources to get an idea of where a client stays at the start of the policy.”
The advanced involvement of tech can be used to make the overall product more convenient for the customers, and makes it possible for insurers to reward them in certain instances.
For instance, modern technology makes it possible for insurers to reward customers for driving less- which translates to reduced risk, which is the central component of the customer/insurer business transaction.
“We use the GPS to count the kilometers that you are driving. This is because MiWay Blink’s product offering allows you to pay less on premiums when you drive less,” she adds.
Though technology is playing its part, you also have a responsibility to make sure that your car is always locked, with windows rolled up, and parked safely overnight.
Submitted by Irvine Partners
