Aegon : launches next generation car insurance

With Aegon Hungary's innovative new smartCASCO car insurance, customers switch between a lower premium to cover the vehicle when parked, and a higher rate whilst driving. This revolutionary approach offers cost savings of up to 50%.

To benefit from this new approach, customers simply install a free app on their smartphone, set up a smartCASCO account and agree to the terms of the contract. These simple steps all take place online using a smartphone. To enter the contract, customers have to submit four vehicle inspection photos via their smartphone, to confirm the condition of the car and identify any existing damage.

Customers top up their account with insurance credits (similar to a pre-paid mobile phone subscription) and the contract lasts until credits on the account have been used up. Depending whether the car is moving or parked, the relevant credits are deducted from a customer's account for each minute.

There are two insurance rates which reflect the risk of the vehicle - a basic lower rate when the car is parked, and a higher rate for when the car is being driven. Customers simply use a smartphone App to switch between the modes when they are driving or have parked the vehicle.

For Android users, it's also possible to connect the app to the cars audio system or devices such as a speakerphone, using Bluetooth. The app will then recognize that it should switch mode, and will emit an audio reminder and pop-up notification to switch the driving mode on or off when they start or complete their journey.

The app provides a clear overview of the amount of time and money used in each state, for the last 24 hours, 7 or 30 days.

Customers with multiple vehicles, set up a contract for each vehicle, but can simply select the vehicle they're using via the app. Vehicles with multiple users can access the same insurance contract via their individual smartphones. The app also provides the flexibility to add supplementary insurances, such as luggage or pet accident insurance, each time coverage is activated to parking or driving mode. This means that customers only pay for what they use, rather than a yearly contract.

'smartCASCO insurance is revolutionary in the industry,' commented Péter Marosvölgyi, Aegon Hungary online sales director, at the launch. 'It's really suited to the changing desire of customers to only pay for the services they use.'

Usage-based insurance already exists in some European countries, however it typically require expensive telematics - 'black box' - devices to be fitted to a vehicle. This requires prohibitively expensive upfront investment.

Instead of this, smartCASCO uses the smartphone's GPS system - which must be turned on while the car is being driven - to monitor the risk and back up any claims. For Aegon smartCASCO Insurance, you simply download the smartphone application and add a premium payment.

As well as appealing to customers on a budget, who like to be in control of exactly how they spend their money, smartCASCO insurance is also beneficial for customers who don't use their cars very often but are still looking for adequate protection against risk.

'We've seen that it makes people think twice about taking the car, as they see the real cost of a journey,' concludes Péter. 'Customers become much more conscious of their usage and are able to set parameters in the app. We have also had a great deal of interest from customers with older vehicles, where the cost of traditional car insurance has proven too expensive.'