Risk Based Automotive Insurance Rating System
First Claim
1. A method for determining the risk associated with providing vehicle insurance comprising:
- compiling a database of historical information comprising;
a plurality of indications of vehicle and driver activities and risk factors wherein the historical information is geo-referenced to transportation elements, and wherein the historical information may be related to insurance risk;
developing a statistical predictive relationship to estimate insurance risk as a function of the historical information for each transportation element wherein the type of historical information is found to have statistical relevance to insurance risk;
monitoring and recording at least one of the vehicle and specific driver activity including both driving habits and when and how often the at least one of the vehicle and driver traverses individual transportation elements;
determining an insurance premium based on;
determining when and where a vehicle is traveling or a driver is driving, and using this information as input to the statistical predictive relationship;
acquiring additional geo-referenced risk factors from outside sources;
refining the statistical predictive relationship by incorporating both the recorded at least one of the vehicle and specific driver activity and additional geo-referenced risk factors into the database of historical information and re-developing the statistical predictive relationship; and
at least one of adding new risk factors as statistically significant amounts of data becomes available for the new risk factors and removing risk factors from the predictive model as the impact on the predictive relationship goes below a statistical threshold.
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Accused Products
Abstract
A method and system for determining the risk associated with providing vehicle insurance. A database is compiled that contains historical information pertaining to vehicle and driver activities and risk factors associated with elements of a road network. The historical information may include, for example, accident counts, and weather and road conditions during the accidents. A statistical predictive relationship is developed to estimate insurance risk as a function of the historical information for each road element. During driving, vehicle and driver activity are monitored and subsequently, insurance premiums are calculated based on the developed model and when and where a vehicle and/or driver travel. The model is periodically updated and refined.
229 Citations
27 Claims
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1. A method for determining the risk associated with providing vehicle insurance comprising:
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compiling a database of historical information comprising;
a plurality of indications of vehicle and driver activities and risk factors wherein the historical information is geo-referenced to transportation elements, and wherein the historical information may be related to insurance risk;developing a statistical predictive relationship to estimate insurance risk as a function of the historical information for each transportation element wherein the type of historical information is found to have statistical relevance to insurance risk; monitoring and recording at least one of the vehicle and specific driver activity including both driving habits and when and how often the at least one of the vehicle and driver traverses individual transportation elements; determining an insurance premium based on;
determining when and where a vehicle is traveling or a driver is driving, and using this information as input to the statistical predictive relationship;acquiring additional geo-referenced risk factors from outside sources; refining the statistical predictive relationship by incorporating both the recorded at least one of the vehicle and specific driver activity and additional geo-referenced risk factors into the database of historical information and re-developing the statistical predictive relationship; and at least one of adding new risk factors as statistically significant amounts of data becomes available for the new risk factors and removing risk factors from the predictive model as the impact on the predictive relationship goes below a statistical threshold. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20)
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21. A computer-implemented system for determining vehicle or specific driver insurance premiums, said computer-implemented system having at least one computer including a processor and associated memory from which computer instructions are executed by said processor, said system comprising:
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a database module configured to compile a database of historical information comprising;
a plurality of indications of vehicle and driver activities and risk factors wherein the historical information is geo-referenced to transportation elements, and wherein the historical information may be related to insurance risk;an insurance risk estimator configured to develop a statistical predictive relationship to estimate insurance risk as a function of the historical information received from the database module for each transportation element wherein the type of historical information is found to have statistical relevance to insurance risk; a monitoring and recording module configured to monitor and record at least one of the vehicle and specific driver activity including both driving habits and when and how often the at least one of the vehicle and driver traverses individual transportation elements; a insurance premium generator configured to determine an insurance premium based on when and where a vehicle is traveling or a driver is driving, and using this information as input to the statistical predictive relationship; a communications module configured to acquire additional geo-referenced risk factors from outside sources; and the insurance risk estimator further configured to; refine the statistical predictive relationship by incorporating both the recorded at least one of the vehicle and specific driver activity and additional geo-referenced risk factors into the database of historical information and re-developing the statistical predictive relationship; and at least one of add new risk factors as statistically significant amounts of data become available for the new risk factors and remove risk factors from the predictive model as the impact on the predictive relationship goes below a statistical threshold.
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22. A non-transitory computer readable media containing instructions to implement a system for determining vehicle or specific driver insurance premiums, the system having at least one computer including a processor and associated memory from which the instructions are executed by said processor, said instructions comprising:
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compiling a database of historical information comprising;
a plurality of indications of vehicle and driver activities and risk factors wherein the historical information is geo-referenced to transportation elements, and wherein the historical information may be related to insurance risk;developing a statistical predictive relationship to estimate insurance risk as a function of the historical information for each transportation element wherein the type of historical information is found to have statistical relevance to insurance risk; monitoring and recording at least one of the vehicle and specific driver activity including both driving habits and when and how often the at least one of the vehicle and driver traverses individual transportation elements; determining an insurance premium based on;
determining when and where a vehicle is traveling or a driver is driving, and using this information as input to the statistical predictive relationship;acquiring additional geo-referenced risk factors from outside sources; refining the statistical predictive relationship by incorporating both the recorded at least one of the vehicle and specific driver activity and additional geo-referenced risk factors into the database of historical information and re-developing the statistical predictive relationship; and at least one of adding new risk factors as statistically significant amounts of data becomes available for the new risk factors and removing risk factors from the predictive model as the impact on the predictive relationship goes below a statistical threshold.
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23. A method for adjusting vehicle or specific driver insurance premiums comprising the steps of:
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1) monitoring and recording a vehicle or specific driver activity including when and how often the vehicle or driver traverses individual transportation elements for a first time period; 2) receiving a risk index for each transportation segment traversed during the first time period; 3) calculating an overall risk index for the vehicle or specific driver for the first time period comprising the summation of each risk index for each traversed transportation segment multiplied by the number of traversals for the first time period; 4) repeating steps 1-3 for a second time period; and 5) if the overall risk index for the second time period is different than the first time period, use this information to adjust insurance premiums up or down.
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24. A method for adjusting vehicle or specific driver insurance premiums comprising the steps of:
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1) receiving a plurality of requests from a specific driver or passenger of the vehicle, using a navigation device located within the vehicle, for route guidance from a start to a destination; 2) for each routing request, determine possible routes; 3) for each possible route, receive real-time hazard information; 4) for each possible route, calculate the relative risk of taking that route; 5) present the driver or passenger of the vehicle with one or more of the safest routes; 6) monitor the vehicle movement and determine if the vehicle has taken one or the safest routes, provided that the vehicle travels to the destination; 7) record over a time period, the amount of safe routes taken and the amount of less safe routes taken; and 8) use the ratio of safe routes taken when compared to less safe routes to adjust insurance premiums up or down.
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25. A computer-implemented system for determining a safe route from an origin to a destination, said computer-implemented system having at least one computer including a processor and associated memory from which computer instructions are executed by said processor, said system comprising:
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a database module configured to store historical information related to driving risk and that is geo-referenced to transportation elements; a monitoring system configured to acquire real-time driving risk information along potential routes from the origin to the destination; and a route calculator configured to determine a safe route from an origin to a destination in part based on the historical driving risk information and the real-time driving risk information. - View Dependent Claims (26, 27)
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Specification