American Family Insurance has launched KnowYourDrive, a new usage-based insurance program, with technology from connected-car company Automatic.
KnowYourDrive is available this month in Arizona and Indiana, with more states set to be announced, according to American Family. Members, who will get an initial five percent discount for enrolling, collect data through an on-board device and visualize it through an American Family-branded, Automatic-powered smartphone app.
"The app provides information about driving habits, and tips and advice on how to improve their driving," says Kelly Lien, American Family VP of personal lines product management.
American Family's previous forays into usage-based insurance included the Teen Safe Driver program, which used cameras to help parents manage teen drivers. That program has been sunsetted, Lien says, as American Family began to explore this type of program.
"Insurance is a fairly low touch-point industry, and this allows us to establish a deeper connection with customers," Lien says. "We're always looking for interactions we can have outside the bill or the claim."
