Providence insurance firm aims to reward good driving

HIROAD ASSURANCE Co. is a new Providence insurance firm that uses an app to monitor and reward good-driving habits./ GRAPHIC COURTESY HIROAD
HIROAD ASSURANCE Co. is a new Providence insurance firm that uses an app to monitor and reward good-driving habits./ GRAPHIC COURTESY HIROAD

PROVIDENCE – A new car insurance company in Rhode Island is aiming to reward policyholders based on good-driving behavior.

HiRoad Assurance Co., an affiliate of State Farm, celebrated a launch party at the Providence G on Thursday. The company, based in Providence, tracks and rewards driver behavior using a smartphone application.

The app tracks, measures and analyzes driving habits, including acceleration, braking and cornering. Safe driving, the company said, could earn customers lower bills, including a monthly premium rate discount of up to 50 percent.

“Before smartphones, there were limited ways to recognize and reward positive choices. Our model addresses this issue,” said Eric Dahl, vice president of HiRoad marketing. “By rewarding people for smarter decisions, we want to help create a better world.”

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Other insurance companies have launched similar usage-based insurance plans, including Drivewise at The Allstate Corp. and Snapshot at The Progressive Corp., although HiRoad says its analytics are run entirely through the app.

Drivers could earn additional discounts based on improved driving habits, including reduced speed or braking distance improvements. Customers’ monthly bills show how driving performance impacted cost.

“We wanted to develop an insurance company that not only empowers our customers, but also delivers a greater impact by making communities safer,” said Steve Harris, vice president. “There are a lot of people out there who are already making good choices about how they live and drive. We knew we could inspire more positive behavior with these people and maybe others with the right model.”

HiRoad policies are now available in Rhode Island.

­Eli Sherman is a PBN staff writer. Email him at Sherman@PBN.com, or follow him on Twitter @Eli_Sherman.

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