ROUTE BASED METHOD FOR DETERMINING COST OF AUTOMOBILE INSURANCE

• US 20070282638A1
• Filed: 06/04/2006
• Published: 12/06/2007
• Est. Priority Date: 06/04/2006
• Status: Abandoned Application

• Current Assignee: Martin Surovy
• Original Assignee: Martin Surovy
• Inventors: Surovy, Martin
• Application Number:
  US11/422,083
• Publication Number:
  US 20070282638A1
• Time in Patent Office: Days
• US Class Current: 705/4
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A method and system of determining cost of automobile insurance based on safety characteristics of road segments comprising routes expected to be followed on trips insured vehicle and driver have made or are expected to make over the time period the insurance contract is in force. The method comprises steps of identifying the trips, selecting routes expected to be followed on the said trips, determining the probability of each selected route being followed on a trip, evaluating the safety characteristics of roads comprising the routes, consolidating the route safety information with the assigned route probabilities and other risk classifications to produce cost of insurance for the identified trips. The results are further consolidated with the cost of insurance due to risk exposures other than those of the identified trips to produce a final insurance cost.

Claims

1. A method for determining automobile insurance cost based on safety characteristics of roads driven on in actual or estimated movements of the insured driver and vehicle over the time period the automobile insurance contract is in force, the method comprising:

identifying trips insured driver and vehicle have made or are expected to make over the time the insurance contract is in force based on the information provided by the insured wherein the said trips are defined by a starting location, intermediate stops and a final destination between which the insured driver and vehicle are expected to drive or have driven in such a manner as to reach the final destination starting from the starting location and driving through the intermediate stops;

estimating insured driver and vehicle movements based on starting locations, intermediate stops and a final destinations of identified trips;

determining an automobile insurance cost component based on the risk exposure due to the said insured driver and vehicle estimated movements on the identified trips;

determining an automobile insurance cost component based on the risk exposure due to driving other than on the said identified trips;

consolidating the said insurance cost components into the final insurance cost.

2. The method as described in [claim 1] wherein some or all of the identified trips are identified based on the pattern of daily commute of the insured driver between the place of residence or location of the insured vehicle'"'"'s garage and the insured driver'"'"'s place of work or school.

3. The method as described in [claim 1] wherein the vehicle or vehicles are used in a commercial operation and wherein the said trips are identified based on dispatch, accounting, and logistics information comprising the addresses of locations where the cargo pieces are being loaded for transport and the locations where the cargo pieces are being delivered.

4. The method as described in [claim 1] wherein the vehicle or vehicles are used in a commercial operation to transport passengers and wherein the said trips are identified based on dispatch, accounting, and logistics information comprising the addresses of locations where the passengers board for transport and the locations where the passengers disembark.

5. The method as described in [claim 1] wherein estimating insured driver and vehicle movements on an identified trip comprises:

finding routes connecting starting location, intermediate stops and final destination;

selecting routes likely to be followed on a trip based on the route characteristics, insured driver profile, vehicle type and use, cargo type, and operation profile if the vehicle is used in a commercial operation;

assigning a probability to each said selected route based on the route characteristics, insured driver profile, vehicle type and use, cargo type and operation profile if the vehicle is used in a commercial operation.

6. The method as described in [claim 5] wherein the said determination of an automobile insurance cost component based on the risk exposure due to the insured driver and vehicle estimated movements on identified trips comprises:

subdividing the said selected routes for each identified trip into road segments based on a road safety actuarial classification in such a way that each segment is classified in a unique actuarial class;

assigning actuarial classification to the said road segments based on their safety characteristics;

determining road segments'"'"' automobile insurance cost corresponding to a risk exposure of insured driver and vehicle driving one single time the length of each road segment and where each segment'"'"'s automobile insurance cost is based on the road segment'"'"'s actuarial safety classification, length of the road segment and other risk characteristics of the vehicle, driver, and operation if the vehicle is used commercially;

consolidating the road segments'"'"' automobile insurance costs and the probabilities of the corresponding routes to produce the automobile insurance cost component corresponding to the risk exposure due to the said insured driver and vehicle estimated movements on identified trips.

7. An insurance claims database matching for each insured the automobile claims due to losses that occurred while driving to a locations where the covered loss occurred.

8. An identified trip database matching the identified trips to an insurance policy, insured driver and vehicle.

9. A system for determining and billing automobile insurance cost based on safety characteristics of roads driven in actual or estimated movements of the insured driver and vehicle over the time period the automobile insurance contract is in force, the system comprising:

means for the insured party or a party associated with the operation of the insured vehicles to record, store, revise, and communicate to the insurer vehicle dispatch, accounting, and logistics information needed to identify trips and to compute the automobile insurance cost based on the insured driver and vehicle estimated movements on the said trips;

means for the insurer to identify trips and to compute automobile insurance cost based on the identified trips and other information submitted by the insured party or a party associated with the operation of insured vehicles;

means for the insurer to communicate insurance cost computed on the basis of the submitted information to the insured party or a party responsible for payment of the said insurance cost.

10. The system as described in [claim 9] wherein the said means for the insured party or a party associated with the operation of the insured vehicles to record, to store, to revise and to communicate to insurer vehicle dispatch, accounting, and logistics information are comprising a computer connected through a computer network to the insurer'"'"'s computation platform.

11. The system as described in [claim 10] wherein the said means for the insured party or a party associated with the operation of insured vehicles to record, to store, to revise and to communicate to insurer vehicle dispatch, accounting, and logistics information are further comprising a program operational:

to record, to store, and to revise information input by the party associated with the operation of the insured vehicles;

to interface and to retrieve information from the insured party'"'"'s dispatch, accounting, and logistics systems;

to communicate information through computer network to programs operational on the insurer'"'"'s computational platform.

12. The system as described in [claim 9] wherein the said means for the insurer to identify trips and to compute automobile insurance cost based on the information submitted by the insured or a party associated with the operation of insured vehicles is comprising a computer connected through a computer network to the insured party'"'"'s computer or to a computer of a third party responsible for paying for the provided coverage.

13. The system as described in [claim 12] wherein the said means for the insurer to identify trips and to compute automobile insurance cost based on the information submitted by the insured or a party associated with the operation of insured vehicles are further comprising a program operational:

to communicate through computer networks to programs operational on computers used by the insured party or a party associated with the operation of the insured vehicles;

to record, to store, and to process information communicated by the insured or party associated with the operation of the insured vehicles;

to identify trips based on the information communicated by the insured or a party associated with the operation of insured vehicles;

to compute the automobile insurance cost based on the trips identifies from the communicated information;

to communicate the said computed insurance cost through computer network to the insured or a party responsible for payment of the insurance cost.