Vodafone has launched a pilot with AIG in the UK to offer a usage-based insurance policy to its customers.

The solution enables insurers to gather detailed data on driving performance and combine it with external information, including traffic patterns and weather data, to improve the accuracy of insurance policies. Insurance companies could then offer additional services like automated emergency calls and tracking of stolen vehicles. The tech is expected to be made available on a self-install basis, but insurers can offer ‘try before you buy’ apps on smartphones.

Vodafone is working with Towers Watson, a US provider of M2M insurance solutions to launch the trial. The companies believe that consumers are increasingly interested in seeing value for money from car insurance policies following the EUs gender ruling. These M2M solutions are being developed to help improve driving habits, road safety and ultimately offer cheaper car insurance for a large number of people.