Real-time driving data is revealing the potentially widespread problem of commercial deliveries in cars insured for private and domestic use only.
ThingCo, the telematics insurtech has estimated that as much as 5% of new private/domestic motor insurance policies are currently being used for takeaway food and online shopping deliveries. The findings have been uncovered from second-by-second driving data collected by Theo, the solar powered telematics device created by ThingCo. Theo is currently installed in over 2000 vehicles through the partnerships ThingCo has created with brokers and insurers over the past four months.
ThingCo is so concerned about the scale of the problem, it has developed an AI-based data visualisation solution to help speed the process of identifying policies where drivers are undertaking regular deliveries. Mapped trip data, quickly reveal journey patterns to and from the same fast food outlet or frequent stops within a distinct area, indicating the vehicle is being used for local deliveries.
Martin Williams, Chief Operating Officer for ThingCo said: “We are in the early stages of the market’s adoption of Theo so what we are seeing could be the tip of the iceberg. There has been a sharp rise in delivery driving during the pandemic as a side hustle and we know it has provided a valuable source of income for many as well as serving the needs of local communities.
However, the volume of policyholders failing to disclose that their vehicle is being used for commercial purposes has exceeded our expectations. The personal lines motor market is largely a bystander to this problem, it’s only through driving data that they can take action before the risk becomes a claim.
“Delivery driving carries a huge level of risk, particularly where late night food deliveries are concerned. It is vital these drivers are identified and encouraged to arrange appropriate cover not only to help ensure that if they do have an accident, they are able to claim but also to protect anyone else innocently involved in a collision. This is a perfect example of the huge power of real-time driving data in helping the insurance market understand and mitigate risk to better protect their customers and their bottom lines.”