Toyota, Aioi Bangkok launch driving habit-based car insurance in Thailand
BANGKOK, NNA - Toyota Motor Thailand Co. and Aioi Bangkok Insurance Public Co. have introduced a new auto insurance scheme whereby actual mileage driven and driving behavior will be analyzed and evaluated to determine discount rates offered to drivers in a country with one of the world’s worst car fatality rates.
The new insurance scheme, which comes under the first-class insurance policy Toyota Care “Pay How You Drive” (PHYD), is available for all Toyota cars equipped with new T-Connect technology, a connected vehicle service with the help of big data analysis, namely the New Hilux Revo pickup truck and the New Fortuner SUV, Toyota Motor Thailand said in a release Tuesday.
Both models were released this month. The new PHYD insurance has been available nationwide in Thailand since Tuesday.
Toyota Motor Thailand expects “around 30 to 40 percent” of new Revo and Fortuner purchasers to apply for this insurance, its spokesperson told NNA Wednesday.
The data collected through the T-Connect technology will be sent to the local unit of Aioi Nissay Dowa Insurance Co. Ltd., a Japanese non-life insurer, and processed to produce reports which will be delivered to customers along with safe driving tips within 30 minutes after the completion of driving trips.
The data will also be calculated to evaluate each driver’s scores, which will in turn be used to determine the rate of special discounts on the renewal premiums each driver receives.
Under the new insurance policy, a 5 percent discount will be offered in the first year while 20 to 25 percent renewal premium discounts will be offered during the second to eighth years, depending on a drivers’ insurance claim records, good driving behavior scores and low driving mileage.
Overall, customer drivers could save as much as 4,891 baht ($158) annually, the spokesperson said.
In estimated road traffic death rates per 100,000 people, Thailand ranks among the highest in the world at 32.7 along with some African countriew, way above the global average at 18.1, according to a 2019 report by the World Health Organization and World Bank data.
In 2018, Toyota Motor Thailand and Aioi Bangkok Insurance rolled out the insurance scheme Toyota Care PAYD – Pay As You Drive, which was considered the first of its kind to be approved by the Office of Insurance Commission, a government body. It was designed to lower costs for infrequent drivers and those who mainly use their cars for short distances.