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Just Insure Expands App-based Auto Insurance to Include Auto Coverage in Arizona

Insurance CIO Outlook | Friday, May 14, 2021

Just Insure provides in-app feedback and coaching for improvement, so there's driver education baked into the process. The price-per-mile premium resets every month to reflect a driver's SafeScore.

FREMONT, CA: Just Insure, Arizona's premier pay-per-mile insurance provider, has expanded its app-based auto insurance to include collision, comprehensive, full-glass, and liability coverage for eligible drivers in Arizona.

Just Insure wants to encourage motorists to drive safely by rewarding them with lower premiums. It's a disruptive model designed to benefit young, tech-savvy consumers by calculating premiums based on individual risk rather than on demographics. First launched a year ago as a liability-only product, Just Insure's prepaid policies reset every 30 days to reflect driver behavior.

"If you drive safely, your premium prices will fall. It's that simple," said Robert Smithson, Just Insure founder, and CEO. "Our vision is to make auto insurance accessible to everyone, regardless of age, income, marital status or credit scores. It's a revolutionary concept, really. We're not looking at demographics to set premiums, because that can adversely affect students, young professionals and the economically disadvantaged."

Just Insure's model is entirely app-based—no vehicle tracking device needed. Premiums are determined by a personalized driver rating or "SafeScore." A driver's SafeScore is calculated based on speed, cornering, braking and accelerating, junctions, distractions, and road conditions. The mobile app sends location and motion data directly to Just Insure after each trip. Just Insure provides in-app feedback and coaching for improvement, so there's driver education baked into the process. The price-per-mile premium resets every month to reflect a driver's SafeScore.

According to Smithson, by combining real-time contextual data with sophisticated telematics, Just Insure's proprietary system can more accurately assess risk than carriers relying on demographic data.

The automotive telematics market has experienced significant growth due to the proliferation of wireless technology. Just Insure is poised to capitalize on this megatrend to fix a flawed auto-insurance structure that penalizes people without established credit histories. The model particularly appeals to young millennials and Gen Z drivers, who may be just starting out in their careers. They're less likely to be married or own property.

"It's about how you drive, not who you are," Smithson said. "We're incentivizing our policy-holders with lower premiums for safe driving. It's a meritocracy rather than a bureaucracy. It's fairer. It's cheaper. And it'll make the roads safer."

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