Launched more than a decade ago—first in the United States—usage-based car insurance, where premiums adjust based on driving behavior, has produced at best mixed results (and what many in France call outright failure). Yet its value as a risk prevention tool continues to inspire new initiatives.
Take the case of U.S.-based PEMCO, a latecomer to the model (around 2022), years after pioneer Progressive. Unsurprisingly, it invites customers to activate the “Pemcodometer” module in its mobile app. Using modern smartphone sensors, the tool tracks driving quality by measuring acceleration and braking, road types, speeding, phone use behind the wheel, and more.
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The primary incentive has always been potential savings, with premium reductions tied to scores earned after a 91-day trial period. But PEMCO now emphasizes another angle: its role in reducing accident risk. This shift comes through in a new awareness campaign addressing the seasonal spike in accidents among young drivers during the “100 deadliest days” of summer.
Alongside generic safety tips for this high-risk group, PEMCO encourages young drivers to take on the challenge of its scoring system—adopting safer habits based on the feedback generated after each trip. Criticism from parents (or other adults) is often rejected, but when the feedback comes from an app, it can carry surprising weight.
The approach also smartly engages parents, reminding them that safety—not just discounts—should motivate them to recommend (or even require) their children to use the system. This not only protects young drivers but also benefits the insurer by lowering claim frequency.
The idea may well appeal to French insurers, especially now that the minimum driving age has dropped to 17, sending an entire cohort of new, high-risk drivers onto the roads—often insured under their parents’ contracts. While the topic is rarely discussed publicly, it’s safe to assume the industry is exploring all possible levers to mitigate these added risks.
