What is TBYB insurance?
TBYB insurance, or Try Before You Buy insurance, is a relatively new model for advertising and distributing insurance. It involves applicants signing-up for a trial period during which time their driving behaviour is assessed – with an aftermarket device or the embedded telematics in the vehicle – with the aim being to “qualify” for the insurance product.
Once the trial period concludes, the insurer assesses the recorded driver-data and either accepts the applicant onto the scheme or denies the applicant and proposes another policy. TBYB insurance is often a more efficient acquisition tool than price comparison web sites as it allows the insurers to quote drivers based on actual driving metrics.
As such, TBYB insurance is often used to appeal to new customers by offering them a free trial while enabling the insurer to collect data on their driving behaviour.
Being app-based, the programmes are quite flexible. Benefits offered for finishing the trial and/or driving safely can be tailored to each customer based on personal criteria, measured risk, and individual traits. And that flexibility also offers other use cases for TBYB insurance. For instance, it can be proposed to existing customers ahead of renewal to offer an individual quote.