American Family Insurance to Deploy Automatic’s Connected-Car Telematics Capabilities

Policyholders in the insurer’s KnowYourDrive program will immediately have access to all of Automatic’s consumer features, including the ability to identify risky driving behaviors.

(Illustration of Automatic’s app and adaptor. Image source: American Family Insurance.)

American Family Insurance (Madison, Wisc.) has entered into an agreement with Automatic, a San Francisco-based B2B and B2C provider of telematics solutions, for the vendor to provide its OBD-II adapters and mobile apps to new American Family Insurance policyholders who enroll in the company’s KnowYourDrive program. The program will start this month in Arizona and Indiana, and will be introduced in more states throughout the year, according to a statement from Automatic.

Felipe Teixeira, National Product Manager, American Family Insurance.

Felipe Teixeira, National Product Manager, American Family Insurance.

“KnowYourDrive, with the Automatic technology, aims to transform the experience of car ownership and insurance for American Family Insurance policyholders,” Felipe Teixeira, national product manager, American Family Insurance. “It gives them a connected car-tool to track and improve their driving while also opening up the opportunity to earn a discount on their insurance policy.”

As a result of the agreement, American Family Insurance policyholders in the KnowYourDrive program will immediately have access to all of Automatic’s consumer features, including the ability to identify risky driving behaviors they can correct to help prevent future accidents, Automatic reports. The behavior is identified through data collected by the adapter plugged into the vehicle’s on-board diagnostics (OBD) port and shared with the driver through the mobile app.

Gary Clayton, CEO, Automatic.

Gary Clayton, CEO, Automatic.

KnowYourDrive is a voluntary program, with participants receiving an introductory five percent discount on their insurance. The discount can reach as much as 40 percent, based on the policyholder’s driving data.

Roadside Assistance and Claims Submission

American Family and Automatic are also jointly developing new services integrated into the program, such as roadside assistance and claims submission to be handled within Automatic’s app.

“We’ve seen an enormous evolution in the way insurance companies think of telematics in the past few years,” comments Gary Clayton, CEO, Automatic. “American Family Insurance is one of the most trusted and forward-looking names in the insurance business, and with good reason—they’re always looking out for their customers. This partnership is further proof of that.”

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Anthony R. O’Donnell // Anthony O'Donnell is Executive Editor of Insurance Innovation Reporter. For nearly two decades, he has been an observer and commentator on the use of information technology in the insurance industry, following industry trends and writing about the use of IT across all sectors of the insurance industry. He can be reached at AnthODonnell@IIReporter.com or (503) 936-2803.

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