Porsche releases pay-how-you-drive (PHYD) cash-back concept

Usage-based insurance (UBI) also known as pay-as-you-drive (PAYD) and pay-how-you-drive (PHYD) is a model of auto insurance where policies depend upon the type of vehicle used, measured against time, distance, behavior, location and additional data. 

Porsche bank gave its selected customers a chance to acquire a discount on their monthly fee while using the PHYD program. The discount and cashback are based on their improved driving skills. In the second phase, this project is expected to become available to all Porsche customers.

In late 2016., Porsche Smart Driver was launched as a pilot program by Porsche Bank on the Amodo platform. Next year it was declared as the winner of the “Kurs award” by the International Institute for Research (IIR) in Vienna. 

Following this success, the program is recently updated with functionalities that are providing more direct value to its users. Based on the number of parameters, drivers can get a monetary value in the form of monthly cash-backs, based on their road safety performance. With this improvement, drivers get a very direct response and an incentive for their driving style.

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Smart Driver app is also available here for all those who want to benefit from their safe drivings. The app is not only reserved for insured users who want to save on their premiums, but also for those who want to test and improve their driving skills. All users of the app have the opportunity to participate in challenges and win prizes provided by program partners: gas stations and restaurants. This makes the program interesting for all drivers in Austria.

Smart Driver app

The app collects data via the OBD device or a GPS sensor of user smartphone to measure speed, acceleration, cornering, and braking while driving. Based on these parameters and scoring, driving behavior is evaluated with the Amodo scoring system. The driver receives a detailed evaluation of his driving behavior after every journey. Every smart ride can lead to lower claims and consequently to a clearer proposition to drivers.

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