Telefonica and Generali's car tracker to reduce cost of drivers' insurance
ReutersMADRID--Spain's Telefonica and insurer Generali have launched a car-tracking device designed to reduce the cost of insurance by monitoring driving habits.
February 8, 2013, 12:01 am TWN
The product, called Pay As You Drive, is part of Telefonica's efforts to expand into alternative technologies, particularly machine-to-machine services for the health care and automotive sectors.
The device will monitor how many miles customers drive, whether they stick to speed limits, what time of day they usually drive and where they go.
Telefonica said that careful young drivers could save about 40 percent a year on car insurance premiums by using the device. Customers will have access to data on their driving and the location of their car through a mobile app.
Other operators, including Vodafone, Deutsche Telekom and China Mobile, are also looking to new technology to offset declining revenue from traditional avenues such as voice calls and text messages.