Sprint announced it will market a turnkey service for insurance companies to offer usage-based car insurance programs.
The wireless carrier's Integrated Insurance Solutions will give insurers the ability to offer customers personalized discounts based on their driving habits. A small device that plugs into a vehicle's diagnostic port captures vehicle information and driver behavior data, which is transmitted over the Sprint wireless network. A cloud-based system analyzes the data with driver-scoring software, which enables insurance companies to assess driver risk and price insurance policies accordingly.
Leading insurance companies, including State Farm, Progressive and Allstate, have introduced usage-based insurance programs in recent years. Insurers are partnering with various technology companies to offer the programs.
Sprint worked with Esurance on a pilot program for usage-based insurance in Arizona. Based on the success of that trial, Esurance recently launched its first usage-based insurance offering for consumers in Texas.
"Partnering with Sprint on usage-based insurance is helping Esurance to offer consumers discounts of up to 30 percent based on their own unique driving habits," Chris Henn, Esurance managing director-product, said in a press statement.
Sprint also is offering a three-month trial program for insurers to evaluate the return-on-investment of the wireless carrier's solution.