Fiat has added telematics devices to the low end models of its Fiat 500 line, in an effort to help younger drivers get cheaper car insurance – making the Fiat 500 a more viable purchase. It will make it cheaper for those that are interested in a telematics enabled insurance package, which have seen many drivers aged under 25 (the typically most at-risk category of driver) able to afford insurance, without which it wouldn’t have been possible.
To go one step beyond just making insurance cheaper for its customers however, Fiat has teamed up with Carrot Insurance and its cash-rewards scheme, which offers both a ‘carrot’ and a stick to telematics premium drivers. As well as threatening to cut back on the number of miles that insured drivers can do per month if they drive poorly, Carrot also offers positive incentives to keep on the straight and narrow. If you drive well, you can earn cashback on your premium (up to 15 per cent a year) making it even cheaper in the long run. On top of that, Carrot also allows referred customers to earn cash rewards for whoever gave them the incentive to buy and cashback on certain purchases at select retailers. As this is being reported by many a telematics news bulletin and telematics magazine.
Fiat hopes that not only will this incentive allow its customers to get by a little easier, but will also help encourage the younger generation of workers and travellers to take on a car. As the price of insurance has risen to astronomic levels, it’s meant that over 35 per cent of all young drivers don’t bother getting a car as it’s simply too expensive. Even with its Carrot twinning scheme it isn’t that cheap though. A low end (albeit brand new) Fiat 500 1.2 Pop with a few extras will set young drivers back some £240 a month for three years.
That’s a big monetary commitment for anyone under the age of 25.
Still, Fiat is being very positive about the whole thing, with Karl Howkins, Commercial Director for FIAT Chrysler UK, said: “Having thoroughly researched the market, we determined that Carrot’s approach to insuring young drivers would be best suited for the iconic FIAT 500 and we’re delighted they are supporting our plans for i-Deal in tandem with their partner, Zurich Insurance.”
Indeed, Carrot and insurers like it have made a big impact in helping young people afford insurance and therefore afford to run a car. However, it usually proves to be the most economical adding a third party telematics package to an older vehicle, rather than buying a brand new one with it built in – despite that option avoiding service and maintenance costs.
Ed Rochfort, product director at Carrot Insurance was also very pleased with the news, stating: “We’re excited that this fantastic product is coming to market, and that the partnership we’ve formed with FIAT has come to fruition.
“Forging deeper links with the automotive industry is a key part of our wider business strategy moving forward, as we recognise that the convergence between manufacturers and the provision of insurance will continue to gather pace.”
More information should become available through telematics events and telematics conferences as well as other new developments on electric vehicle telematics and telematics navigation and telematics infotainment.