• News
  • Guides
  • Reviews
  • Media
  • About
  • News
  • Guides
  • Reviews
  • Media
  • About
Sign up Now (For Free)

Sign up for our newsletter and receive the latest automotive news in your inbox!

Invalid email address
We promise not to spam you. You can unsubscribe at any time.
Thanks for subscribing!
News
Read Now
  • All News
  • Automakers
  • Automobiles
  • Auto Shows
  • Business
  • EVs & Environment
  • Guides
  • Lawsuits/Legal
  • Regulatory
  • Ride-Sharing
  • Safety & Recalls
  • Technology
Recent
  • Fabled Mercedes Sports Car Sells for Record $146M
  • Ford Recalling 39K Full-Size SUVs Due to Potential Fire Issue
  • Mercedes-Benz Abandons Its Entry-Level Ambitions
  • Push is on to Make Stealing a Catalytic Converter a Federal Crime
  • Toyota Marks 25th Anniversary of Sienna Minivan
  • Honda Offers Early Look at Prologue EV
  • Argo AI Shifts to Driverless Operations in Two Markets
  • Hyundai, Kia, Honda, Jeep and Nissan Fare Badly in Latest Crash Tests
  • Finally! Lexus RX to Get a Complete Makeover
  • Inflation Affecting Summer Vacation Plans
Editor’s Choice
    Reviews
    Read Now
    • All Reviews
    • Classic Cars
    • Concept Cars
    • Convertibles
    • Coupes
    • Crossovers/CUVs
    • Diesel
    • Hot hatches
    • Hybrids
    • Luxury Vehicles
    • Minivans
    • Muscle Cars
    • Pickups
    • Sedans
    • Sports Cars
    • Super Cars
    • SUVs
    Recent Reviews
    • A Week With: 2022 Kia Forte GT
    • First Drive: 2023 Genesis GV60
    • First Drive: 2022 Mercedes-Benz C 300
    • First Impression: 2023 Nissan Z
    • A Week With: 2022 Lexus LC 500 Convertible
    • A Week With: 2022 Ram 2500 Power Wagon Crew Cab
    • First Drive: 2022 Ford F-150 Lightning
    • First Drive(s): 2022 GMC Sierra 1500 Denali Ultimate and AT4X
    • A Week With: 2022 BMW i4 M50
    • A Week With: 2022 Mazda CX-5
    Editor’s Choice
      Guides
      Car Warranty
      • Endurance Warranty Reviews
      • BMW Extended Warranty
      • Extended Warranty For Cars Over 100k Miles
      • Extended Car Warranty Cost
      • Subaru Extended Warranty
      • CarShield Reviews
      • CarShield Cost
      • Aftermarket Car Warranty
      • CARCHEX Warranty Reviews
      • Reputable Extended Car Warranty Companies
      • Used Car Warranty Companies
      • Best Car Warranty
      • Is CarShield A Scam?
      • Mercedes Extended Warranty
      • CarShield Plans
      Insurance
      • How To Identify A Car Insurance Company
      • Geico Mechanical Breakdown Insurance
      • How Far Back Does A Car Insurance Company Look
      • Mechanical Breakdown Insurance For Used Cars
      • State Farm Mechanical Breakdown Insurance
      • Mechanical Breakdown Insurance From Progressive
      • Dollar A Day Insurance
      • Auto Insurance For SSI Recipients
      • Car Insurance Rates After A Suspended License
      • Auto Insurance For Salvage Vehicles
      • Average Cost of Dodge Ram 1500 Car Insurance
      • Car Insurance Florida
      • Full Coverage Auto Insurance
      • GrubHub Insurance
      • Amazon Delivery Auto Insurance
      Shipping
      • Car Shipping Companies
      • uShip Reviews
      • Auto Shipping From California To Hawaii
      • Montway Auto Transport Reviews
      • Cheap Car Shipping
      • Easy Auto Ship Reviews
      • Auto Shipping Miami
      • Auto Shipping To Alaska
      • Car Shipping Cost
      • Auto Shipping Hawaii
      • Auto Shipping Puerto Rico
      • Sherpa Auto Transport Reviews
      • Auto Shipping Atlanta
      • Auto Shipping Boston
      • Auto Shipping. Chicago
      About
      • About Us
      • Contact Us
      • Terms of Use
      • Privacy Policy
      • Affiliate Disclosure
      • Sitemap
      TheDetroitBureau.com

      More than just “another” place to find news, reviews, spy shots, commentary, features, and guides about the auto industry. TheDetroitBureau doesn’t stop with the press releases or confuse a few lines of opinion with insightful, in-depth reporting.

      Contact Us

      Like what you see? Have some ideas for making The Detroit Bureau.com even better? Let us know, we’d love to hear your voice.

        Media
        Listen Now
        • Headlight News: All Episodes
        More from TheDetroitBureau
        • Guides
        • Latest News
        • Auto Reviews
        • Podcasts
        Headlight News

        TheDetroitBureau.com’s Headlight News offers a look at the past week’s top automotive news stories, as well as what’s coming up in the week ahead. Check out the week’s top story and our latest review…along with a dive into the past with this week in automotive history.

        home > news > Automakers > Hyundai Joins Growing Push for Usage-Based Insurance

        Hyundai Joins Growing Push for Usage-Based Insurance

        Studies find motorists increasingly interested in insurance alternatives.

        Paul A. Eisenstein
        Paul A. Eisenstein , Publisher & Editor-in-Chief
        March 29, 2021
        2022 Hyundai Tucson N Line front
        Hyundai is offering more than just a new line-up of sport-utility vehicles now, introducing its new usage-based insurance program.

        Hyundai is the latest automaker to let its buyers switch to insurance coverage based on both how much they use their vehicles and how well they drive.

        So-called “usage-based” insurance is already offered by several other manufacturers, including Ford Motor Co., as well as some of the country’s largest insurance companies like Nationwide and Progressive. It has become easier to track vehicle usage thanks to onboard connected car technology and some experts believe that may lead to a switch in the way highway and fuel taxes are levied, as well.

        “As demand for more transparent auto insurance pricing grows, usage-based insurance is a powerful way for Hyundai drivers to have greater control over their insurance costs,” said Manish Mehrotra, the executive director of Digital Business Planning and Connected Operations, Hyundai Motor North America. “Our owners expect this kind of technology and want to pay the right amount. No one wants to pay more than they actually should.”

        Capturing a Snapshot of driver behavior

        Hyundai is offering its insurance program through its Blue Link service.

        The first pay-as-you-drive insurance program, Progressive’s Snapshot, was introduced in the mid-1990s. It focused on tracking driver behavior, rewarding motorists who accelerated and braked more cautiously with reduced rates. Aggressive drivers faced the prospect of being penalized.

        Early on, insurers relied on data collected using a vehicle’s OBDII sensor, the data periodically uploaded to the company for analysis.

        Hyundai’s approach relies on its Blue Link Connected car technology and, when a vehicle is equipped with a two-way telecommunications system, driving data can be directly uploaded in real time through the Verisk Data Exchange. The system allows driving data to be analyzed and rated. It allows an insurer to adjust rates to reflect how much of a risk the driver poses.

        Numerous factors impact rates

        The factors Verisk looks at include: “smooth driving, speed responsibility, driving time of day, consistent driving and time behind the wheel,” Hyundai noted in a press release.

        The new insurance program uses a score-based system to establish the rates.

        Hyundai owners who sign up for the program can keep an eye on how well they’re doing through the automaker’s Blue Link app. It provides an individual Driving Score ranging from 0 to 100, the higher the number the better. It also offers tips on how to improve their ranking.

        “For example, a driver could improve their score by braking smoothly, less late night driving and accelerating gently,” said Hyundai.

        More and more motorists opt in

        Drivers must opt in to the program to allow their data to be tracked. Verisk claims to have already collected information on 240 billion miles of driving data.

        “The Verisk Data Exchange was built to make usage-based insurance easier and more accessible,” said Karthik Balakrishnan, senior vice president and general manager of Verisk’s telematics business. “Hyundai shares this vision and together, we look forward to this new collaboration and its many benefits for consumers as well as auto insurers.”

        Hyundai joins a growing list of manufacturers who offer usage-based insurance. Ford last December announced teaming up with insurers including Allstate, Liberty Mutual and State Farm on a similar program. As with Hyundai, the automaker uses built-in telematics technology to gather information on driving behavior and usage.

        For owners enrolled in the program, they can get a history of their driving score.

        Motorists can directly sign up with insurers like Progressive and Nationwide who tied into a vehicle’s OBDII sensor to collect data.

        Privacy concerns

        A survey released by Nationwide last December showed growing support for such programs, the company reporting that 35% of new auto business is usage-based. It said it expects that to reach 70% or more over the next five years.

        But the Nationwide study also found a majority of those surveyed expressing at least some concerns about the potential impact on privacy.

        There are studies suggesting that usage-based programs help reduce the likelihood of a crash by retail vehicle owners. A recent study by Willis Towers Watson found that using telematics to monitor the behavior of commercial vehicle drivers can reduce crash rate by as much as 80%.

        An alternative to fuel taxes

        With most vehicles expected to come equipped with two-way telematics in the years ahead, experts are studying other opportunities. The technology could provide an alternative to today’s federal and state highway fuel tax system which is based on per-gallon fees. California and several other states have explored the idea of charging a flat, per-mile fee, instead.

        That approach could come into play in the years ahead as more and more electric vehicles take to the road since they currently do not directly contribute to highway funding.

        Recently Published
        Mercedes Rudolph Uhlenhaut with coupe

        Fabled Mercedes Sports Car Sells for Record $146M

        Today
        2021 Ford Expedition STX front

        Ford Recalling 39K Full-Size SUVs Due to Potential Fire Issue

        Yesterday
        Mercedes Drive Pilot steering wheel controls

        Mercedes-Benz Abandons Its Entry-Level Ambitions

        Yesterday

        Leave a Reply Cancel reply

        Your email address will not be published. Required fields are marked *

        Share this article:
        © The Detroit Bureau 2022
        • Guides
        • Privacy Policy
        • Terms of Use
        • Affiliate Disclosure
        • Contact Us
        • Sitemap
        Follow Us: