Maya Fisher-French takes the new MiWay tracking device for a spin in the hope of cutting her insurance premiums.
I really do believe that I am a better driver than my husband and statistics support this by offering women lower insurance premiums. I am therefore hoping that the new MiWay tracking device will prove this irrefutably and settle an ongoing family dispute. I am also hoping that it will reduce my monthly insurance premium.
Short-term insurer MiWay has brought to market a ground-breaking product that can actually track how good or bad a driver you are and adjust your premiums accordingly. The device, named Zhaker, is a world first and MiWay is waiting for a patent on the product.
Insurance models work on a premium based on the average driver within a risk group. The good drivers subsidise the premiums of the more reckless drivers in the group. By building up profiles on various drivers, MiDriveStyle will be able to reward better drivers with lower premiums and charge the more reckless drivers according to their risk profile. It is a great way to reduce your insurance premiums in tough economic times.
MiWay CEO Rene Otto says good drivers in high-risk categories would stand to benefit the most from MiDriveStyle. For example, anyone under 25 years old pays higher premiums because of the risks of this age group. But, by having the device fitted, MiWay would be able to identify the cautious drivers within the group and these drivers could find their premiums slashed by as much as 50%. Otto says MiWay is hoping that, over time, the discount will be even higher.
Drivers who have lost their no-claims record can drive their way to lower premiums. “Once you have claimed, even if it is not your fault, it would take you three to five years of no claims to be viewed as a good risk again and benefit from lower premiums,” says Otto. By opting for the MiDriveStyle, that person can improve their risk profile and premiums within three to six months.
Apart from lower premiums there are other benefits to having the device installed. First of all the device measures impact. If a significant G-force is measured MiWay will call immediately to find out if you are all right and whether you need a tow truck or ambulance. The other is that it can help to resolve accident disputes. If someone drives into the back of you and then claims you reversed into them, it would be very simple for MiWay to prove that you had been stationary at the time.
MiDriveStyle also comes with a link to a website that shows your driving style as well as where your car is at a given time. This can be very useful when tracking your children who have borrowed your car for the evening. You know exactly where they are and whether or not they are driving recklessly. If your kids were on a joy ride, you would be contacted immediately by MiWay. As reckless driving can be an indicator of a stolen vehicle, MiWay will contact you if they see a dramatic change in your driving pattern.
The device costs R150 per month, however this does replace your tracking device. The premium will be adjusted by a discount on the theft portion of the premium, which in most cases would lead to a discount of about R100. It could even cancel out the R150 in total. Hopefully your premium savings for being a good driver will more than offset the cost.
The experience
As a MiWay client I have had the device installed in my vehicle. By measuring the distance I travel, the speed at which I drive, my acceleration and deceleration (braking) as well as non-gravitational movement such as swerving, MiWay will be able to build up a profile of my driving habits over a three-month period. If they have enough information by then they will adjust my premiums accordingly. If I score as a green driver, I am an above-average driver; amber would suggest average driving; but if I fall into the red zone my driving is not as good as I thought.
Obviously I am hoping that my premium will be reduced, but there is always the risk that it could go up. I will also receive a communication once a month so I can mend my ways if I am driving in the red zone. As my premium is re-calculated every three months, even if I have a bad run I can drive my way back into the green and lower premiums. I like the fact that I can control my premiums with my driving and that taking responsibility will pay dividends. The choice is to drive better or pay more.
I have only had the device for a week so it is difficult to build much of a profile or see an impact on my premiums, but I have found that I am more conscious of my driving and tend to be more careful knowing that Big Brother is watching. I am very sensitive about my husband driving my car as he tends to leave braking to the last minute — I really do not want his driving to affect my premiums. This is exactly what MiWay is hoping will happen — just having the device will improve their customers’ driving.
There were a few areas of concern. The first is that if you have an accident and you were driving at 130km on the highway, will MiWay still pay out? Otto says that you are insured against your own negligence but not against recklessness. So driving at 150km in a 120km zone would be negligent but covered by insurance. Driving at 120km in a 60km zone would be reckless and not covered in the event of an accident.
Secondly, I am in a contract with my current tracking provider and would have to continue to pay them until the contract expires. Otto says this will be an issue for people signing on in the beginning and MiWay has taken the view that customers in this situation can negotiate a better monthly fee for MiDriveStyle.
And, finally, what is it going to do to my car? Car warranties do not normally allow people to go around sticking things in your engine. MiWay’s Rene Otto says car manufacturers are happy with the installation of the device, which is simply two wires attached to your battery, uses up almost no battery power and does not interfere with the electronics of the car. In fact MiWay will be able to notify you if your battery is running flat because the device will stop working. The only real surprise came when the device was installed and I was told always to phone MiWay to deactivate the device before disconnecting the battery or be faced with a squirt of pepper spray. This is a way to prevent criminals from deactivating the device.
It is going to take time before I can assess the financial benefits of the device, but so far, so good.