How Does Smartphone UBI Data Stand Up?

Most insurance executives agree that usage based insurance is near its tipping point … ready to take its place as a dominant auto insurance solution.

However, opinions are still mixed on which telematics method will prove most effective – the smartphone UBI platform or the traditional onboard diagnostic device.

There’s no doubt that smartphone UBI offers more cost-effective execution and faster speed to market. It eliminates the expense of purchasing, distributing and updating hardware – overcoming a tall industry hurdle.

Furthermore, research has shown that consumers are receptive to the idea of smartphone telematics. It seems logical that a smartphone app is a less intrusive solution than plugging a black box into one’s car. We also know that smartphone and app usage are growing exponentially. Those who have smartphones never leave home without them.

However, one question remains:
Can smartphone UBI data be trusted?

To definitively answer the “data” question once and for all, we’re pleased to announce the Driveway Data Challenge.

1.  Three drivers: Jake the sleep-deprived, Igor the distracted and John the lead foot

2.  Three weeks: August 4 through August 24

3.  Two telematics methods: Smartphone UBI app and OBD device

4.  Two questions:

-Who is the safest driving risk?
-Which device detects the most driving data?

5.  Results:  The outcome of the Driveway Data Challenge will be revealed at Insurance Telematics USA in Chicago, at our breakout session, “Are OBD Devices the Gold Standard for Usage Based Insurance?”

If you can’t join us at the Telematics conference in Chicago, go here to vote for the driver you think is safest and to register to receive the full results report when it becomes available.

As far as we know, no one else in the industry has conducted this type of comparison. If you’re in the middle of a usage based insurance buying decision, this information could cause a U-turn in your UBI strategy.