O2 moves into car insurance market

O2 moves into car insurance market

O2 has become the first mobile company in the UK to offer car insurance. The O2 Drive policy provides a Defaqto 5-star rated car insurance policy, discounted car servicing and maintenance, and an additional telematics proposition O2 Drive - Box on Board.

 

O2 Drive is offered in partnership with Junction, insurance group BGL’s partnerships business. The policy is available to non-O2 customers, and is driven by a mobile app which offers information on policy details, emergency breakdown services, and accident advice. The app’s Car Assistant also allows customers to have discounted repairs, MOTs or servicing arranged for them directly with a local garage, with a 12 month guarantee on any parts or labour.

 

O2 Drive customers will also receive perks including discounts and reward vouchers and car accessories.

 

O2 Drive’s additional Box on Board product gives customers the potential to secure greater discounts by fitting a small telematics device beside their car battery. The device gives customers access to their driving scores via the O2 Drive app, along with tips that could encourage safer driving and keep or improve their no claims discount, and is aimed at helping young drivers (17-24) get on the road.

 

David Plumb, Digital Director at O2, said: ‘Despite the rapid evolution of technology, the way we insure and service our cars has remained largely unchanged, with customers telling us that buying insurance is impersonal and confusing. We are on a mission to make customers’ lives easier through mobile, which is why we created O2 Drive.’

 

‘Based on the excellent feedback we’ve had so far for O2 Drive, the Box on Board proposition was created to further simplify the challenges of owning and driving a car safely. It unites our award-winning customer experience with our expertise in mobile to create a more personalised service – insuring people for who they are and rewarding them as they drive.’



O2 isn’t the first company to offer a telematics system as an incentive to improve driving behaviour. Admiral’s LittleBox system claims it can save customers up to 25% on their insurance policy, and offers free theft tracking, while Aviva’s Drive is a free app which monitors driving skills, and calculates an individual driving score out of 10 based on factors such as cornering, braking and acceleration. Aviva says it expects safer drivers to achieve an average saving of £170 on car insurance.

 

 

 

 

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