We’ve all heard of a credit score. It’s that three digit number used by lenders to determine how likely you will be to pay back your loans. But, did you know that there is now a similar score used to determine how safe a driver you are? Introducing: the FICO® Safe Driving Score.
What is a FICO® Safe Driving Score?
In October of 2016, the largest and best-known credit score software company, FICO, announced that they had teamed up with the biggest provider of online drivers education, eDriving, to create a method for assessing drivers based on their safe driving habits. The result is the FICO® Safe Driving Score.
What’s in it for drivers and insurers?
The FICO® Safe Driving Score could prove to be a huge advancement in the world of insurance for a number of reasons.
For drivers, a great safe driving score will show that they are a low-risk to insurers, which will help to get them the best rates possible. While those with lower scores will be able to educate themselves about what makes them a high-risk to insurers, and will thus be able to improve on these areas to increase their scores.
For insurers, determining risk levels will be made easier by utilizing the FICO® Safe Driving Score. FICO and eDriving hope that in the years to come, their safe driving score will become the standard in helping auto insurers to fairly assess driver safety and determine risk levels.
How does it work?
To determine their safe driving score, drivers install and enable an app on their smartphones—eDriving Mentor. The app will determine the FICO® Safe Driving Score based on things like accelerating, texting while driving, braking and more.
In addition to determining the score, the Mentor app will also offer specialized tips and advice for improving safe driving habits based on the data collected.
When can we expect it?
FICO and eDriving announced the launch of their FICO® Safe Driving Score in October of 2016. Currently, the scores are only available to some business car fleets, but they hope to launch a widespread launch early this year (starting with teen drivers).