ICMIF member Maif (France) recently launched a new type of car insurance. This new cover is prices on a "pay when you drive" (« payez quand vous roulez » in French) basis. Maif launched this new “by the minute” car insurance product with the help of its subsidiary Altima, which serves as the innovation laboratory for the mutual group.
The policyholder’s contract includes a fixed monthly fee that covers mandatory risks, including when the car is stationary (risk of theft, fire, vandalism ...), and then a rate per minute for the insurance cover for when the car is being driven. Maif says that for a “good driver” with a standard vehicle, the monthly fee is on average of 25 euros and the cost of driving is 0.02 euro per minute."
In practical terms, the driver places the Altima box in the glove compartment of the vehicle, downloads the Altima app on his/her smartphone and activate the GPS and Bluetooth so that the box connects to the app. The mobile application then records in real time the duration of any journey made. Possible fraudsters who do not activate their Bluetooth would not be covered if they are involved in an accident.
“Demand for this product came from our members, as we had no specific product for those who only drive a little. But there is a market for this and now the technology allows us to provide an instant solution” said Florent Villain, Group Marketing Director, Maif, who is also Director General of Altima. Explaining the ease of using the product Villain said: “I don’t have to do anything, as soon as the car begins to move, the box counts the minutes I have been driving. If I only drive for 20 minutes I will only pay for 20 minutes of insurance cover.”
"This is an offer for drivers who make short trips or who drive less than 20 to 30 minutes per day," explained Elodie Degorce, Marketing Manager at Altima. The product is aimed at those who only use their car at weekends or retired people perhaps who only use their car for short, local trips. She added: "30% of French people drive less than 6,000 kilometres a year and a driver who drives 20 minutes a day can expect up to 20% savings".
Maif is the first insurer in France to launch this type of insurance policy which provides cover on a “pay when you drive" basis. Many insurers already offer cover based on distance driven or “pay how you drive,” policies based on how safely people drive. Élodie Degorce says the Maif/Altima offering is different: "Our offer is different because we focus on time," said Élodie Degorce. She went on to say that last year, a French start-up Wilov also launched a motor insurance policy based on usage by time spent driving. However, Wilov operates in 24-hour increments, not by the minute like Maif's policy.