19 States Approve ISO’s Telematics-Based Auto Rating Tool

ISO has filed its first vehicle telematics-based rating rule with insurance regulators in 33 states and received approvals in 19 states.

The GeoMetric rating rule for use by insurers writing personal and commercial automobiles uses information collected via telematics to award discounts for vehicles operated in areas safer than where they are garaged. ISO’s patent-pending rule assesses the risk of an insured vehicle based on actual driving locations while respecting the privacy of the insured, according to ISO.

The GeoMetric rating rule uses a set of predictive modeling tools called ISO Risk Analyzer, which considers hundreds of variables related to where people live, work and drive to measure the risks posed at each geographic location. ISO said the GeoMetric product builds on those insights by applying the geographic risk measurements to each vehicle’s driving locations.

The result is a report showing the number of miles and time traveled by the insured within each risk tier, or band.

Vehicles that are garaged in higher bands but frequently travel into lower bands may be eligible for discounts of up to 25 percent under the program.

The GeoMetric rating rule is the first telematics-based program that ISO has filed with insurance regulators in various states.

ISO would not disclose the 19 states that have approved the product.

Topics Auto