There’s a new app from Rooster Insurance. The insurance company claim that they can reduce the cost of premiums by up to 40%, by providing premiums based on how motorists actually drive, as opposed to crude demographics such as age, marital status and whether they own a home – but without the continuous monitoring or variable premiums that telematics policies offer. Along with PAYG mileage based car cover, this switch to behaviour driven insurance is arguably the most important trend in the market this year.
Drivers aged 20 and over who have been driving for at least 12 months complete a three week, one-off test drive in order to obtain a score which their quote is based on. Users download the app, which records how and where they are driving, through their phone. However, unlike telematics policies that monitor driving for the duration of the policy, Rooster Insurance only assesses driving behaviour via its app during the test drive period. This gives young drivers both a fair insurance cost and feeling of trust in their abilities.
At the end of the test period, users are provided with a fixed quote based on how they have actually driven. Good drivers can save up to 40% as a result.
The app has been designed to save younger motorists money on their car insurance, but has wider appeal to any age group who want fairer priced insurance.
Data shows that only 30% of all UK drivers make up almost 50% of car insurance claims – and in light of this, Rooster Insurance does not insure bad drivers at the end of the three week test drive so that, rather than regularly paying out for bad drivers’ claims, it uses the savings to keep insurance costs for good drivers as low as possible – allowing it to offer much fairer prices.
The company aims to shake up the outdated insurance industry with the belief that the traditional way of pricing car insurance is unfair and broken, and often sees good drivers being pooled with the bad, meaning those who can drive well end up effectively subsidising the claims of those few bad drivers. As such, it has invented a smarter way to measure a driver’s risk, outside of the usual demographics, in order to offer fairer priced insurance – to buck the trend of high insurance premiums as a result of traditional insurers being unable to distinguish between those who can and can’t drive well.
Rooster Insurance is also able to offer these savings as a result of savvy infrastructure – with automated processes keeping overhead costs low and ensuring savings are passed back to the community.
Richard Tucker, founder at Rooster Insurance, comments: “We built Rooster Insurance on the foundations and understanding that the current insurance system is broken. It’s unfair for so many people to be paying for the faults of so few, and I believe we’re a nation of good drivers that deserve affordable costs. Young drivers especially are often taken advantage of, and I’m so happy we can help them get out onto the roads while promoting the benefits of being a safer driver.
“Built on a simple premise, we are challenging the big dogs at their own game with a brand new offering which is going to lower insurance costs for so many people – we can’t wait to see how the industry evolves following the trail we are blazing.”
FCA approved and regulated, all of the Rooster Insurance policies are fully comprehensive and underwritten by Mulsanne Insurance, and re insured by Munich Re and Trans Re.
Signing up to the app is quick and easy with no long forms to fill in, all drivers have to do is scan their driving licence and answer a couple of questions.
The app is now available for public download for iOS and Android via both the Apple App Store and Google Play Store.
IE Comment; Interesting to see how a three week test drive works out long term as regards claims. Will drivers game the system by going steady during the test period and then hoofing it once they have a cheaper quote? Then there’s the matter of whether the three week test route takes in busy urban roads, or quiet rural lanes during lockdown – that could affect the driver behaviour too.