Ahead of the national launch scheduled for 2009, Aviva is making its pay-as-you-drive insurance option available as a pilot scheme in the greater Paris region from 19 September.
Ahead of the national launch scheduled for 2009, Aviva is making its pay-as-you-drive insurance option available as a pilot scheme in the greater Paris region from 19 September. The pay-as-you-drive package, to be offered as an option under Aviva car insurance policies, allows young drivers to pay lower than standard prices for their insurance premiums, using calculations which take account of the actual number of kilometres they drive and the time periods when they use their cars.
Aviva will look at the results of this pilot scheme to put the finishing touches to its policy management, particularly the way in which premiums will be readjusted on the basis of policy-holder behaviour.
The Pack Avantage Kilomètres encourages responsible driving
Aviva put together its pay-as-you-drive insurance package as a response to the needs of younger drivers (aged between 18 and 25 and never having held an insurance policy before) driving less than 9000 km a year, but also in order to encourage responsible driving. For example, this pricing system encourages them to take to the road when the risks of having an accident are at their lowest, with kilometres driven at night (between midnight and 6 am) coming out more expensive than kilometres driven during the day.
Again in the spirit of accident-prevention, Aviva offers a 10% reduction on the Pack Avantage Kilomètres for parents who have their car insurance with Aviva and who make sure that their child drives only his or her own vehicle (rather than the parents' car, which is likely to be more powerful).
The pricing of the Pack is designed to be as simple and fair as possible
Aviva will offer subscribers the choice between two kilometre-based fixed-price options, based on the number of kilometres driven between 6 am and midnight. This fixed-price system firstly gives the policy-holder a clear idea of their annual premium, and secondly, allows them to see how much they will save compared to standard insurance policy options.
The first fixed-priced option is designed for drivers who do less than 7,000 km a year and the second for those who drive up to 9,000 km a year. Those insured with the Pack Avantage Kilomètres will enjoy the following reductions compared to conventional insurance policies:
- 30% with the 7000 km deal
- 20% with the 9000 km deal
The total amount the policy-holder will have to pay is adjusted on the basis of the number of kilometres they actually drive. This means that Aviva will either refund them or invoice them an additional premium amount, depending on whether they fall short of or exceed their kilometre allowance. The maximum refund is set at 10% of the total premium cost, while any additional premium invoiced may not exceed 70% of the premium for the 7,000 km package and 50% for the 9,000 km package (meaning that in either case, the maximum payable will be 20% more than a conventional insurance policy premium).
Under both options, the price of a kilometre driven between 6 am and midnight over and above the kilometre allowance is set at 10 cents. A kilometre between midnight and 6 am costs 50 cents from Monday to Friday and €1 on weekends and bank holidays.
The box that transmits the journey data is provided, installed and removed at no extra cost to the customer.
Tracing your contract and associated services
Policy-holders can see how many kilometres they have driven by consulting a dedicated website. Text message alerts will be sent to policy-holders to warn them if the data box is not working or the car batteries are getting low, or if they are getting close to the limit of their kilometre allowance.
Personal data handling is restricted to the minimum required for invoicing and risk assessment
Aviva received a positive opinion from the French data protection authority early in September, confirming that no sensitive data are collected (such as vehicle speed). Aviva gathers information solely on driving times and the types of road used (rural, urban or motorways). The information is collated every week so that only the overall data are kept and to ensure that it is impossible to follow the routes beyond this data collection.
Geo-positioning is possible only by request of the customer if the vehicle is reported stolen.
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Press contacts:
Aviva Assurances- France
Fanny Dieval
Telephone: 01 76 62 79 67
E-mail: fanny_dieval@aviva.fr
HDL Communication on behalf of Aviva Assurances
Nicolas Faget
Telephone: 01 58 65 20 17
E-mail: nfaget@hdlcom.com
Notes to editors:
About Aviva
Aviva is Europe's leading provider of life insurance and long-term savings products with strong positions on other markets around the world. Based on gross premiums at 31 December 2006, Aviva was the world's fifth-largest insurance group. Aviva's three principal businesses are life assurance and long-term savings, asset management and non-life insurance, with a total turnover of €56.7 billion and €499 billion in assets under management at 31 December 2007.
With more than 150 years' experience in France, Aviva is one of the top 10 players in the insurance market. Aviva France stands out from the crowd with its solid, balanced and profitable multi-distribution model: 875 general agents, 1800 branch staff, 400 life insurance advisers, 1000+ brokers and a number of partners (Union Financière de France and Médéric). Aviva France also has major partners such as AFER, the largest savings association in France, and the Crédit du Nord group. Specialising in unit-linked products, Aviva is recognised for the excellent performance of its long-term funds and solid commitment to its customers through its "Good Advice" approach. Aviva employs more than 3300 staff in France. At 31 December 2007, Aviva France recorded consolidated sales of €6.5 billion, an IFRS net profit of €338 million and managed assets worth €74.2 billion.