New insurer Rooster Insurance claims it can reduce the cost of motor premiums by up to 40% through an app-based test-and-drive approach to generating quotes.
Rooster, whose policies are underwritten by Mulsanne Insurance, provides premiums based on driving performance rather than traditional demographics.
Drivers aged 20 and over who have been driving for at least 12 months complete a three-week, one-off test drive in order to obtain a score that their quote from Rooster is based on. They download the app, which records how and where they are driving, through their smartphone.
Rooster says its approach differs from most telematics policies in that it only assesses driving behaviour via its app during the test drive period.
At the end of the test period, drivers are provided with a fixed quote based on how they have driven. Rooster says good drivers can save up to 40% as a result.
While the app was specifically designed for younger drivers, Rooster says any age group can benefit, because, according to its own research, only 30% of all UK drivers make up almost 50% of car insurance claims.
By not insuring bad drivers at the end of their three-week test drive, Rooster is able to pass on savings from a reduction in claims to the drivers that it does insure.
Richard Tucker, founder of Rooster, comments: “We built Rooster Insurance on the foundations and understanding that the current insurance system is broken. It’s unfair for so many people to be paying for the faults of so few, and I believe we’re a nation of good drivers that deserve affordable costs. Young drivers especially are often taken advantage of, and I’m so happy we can help them get out onto the roads while promoting the benefits of being a safer driver.”
“Built on a simple premise, we are challenging the big dogs at their own game with a brand new offering which is going to lower insurance costs for so many people—we can’t wait to see how the industry evolves following the trail we are blazing.”
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