ThingCo recently launched its smart dashcam Theo that aims to shake up the telematics market, but its high cost may limit uptake among interested young drivers.
Theo is not an ordinary dashcam. It combines the normal recording function of dashcams with advanced driver-assistance systems and Amazon Lex’s voice and text technology. Unlike other telematics policies, Theo is owned by the customer, and drivers can share their data with car insurance providers to find cheaper policies. They can also access rewards for good driving behaviour.
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However, Theo is considerably more expensive than a regular black box solution. The dashcam costs £220 plus a monthly subscription fee of £4.99. By comparison, many telematics providers will install a black box free of charge.
This additional cost may deter drivers from purchasing Theo, especially when we consider the core group of telematics users. According to GlobalData’s 2018 Consumer Survey, 44% of telematics policies are held by drivers aged 29 years old and under. This is due to the high car insurance premiums that young drivers face due to their higher risk profiles. They are more likely to be constrained by their budget, so price will be a major factor in their purchasing decisions.
One advantage of owning Theo outright is that it generates a driving score which can be carried between providers. Millennials, not usually known for their brand loyalty, will be able to use their driving score with a new provider and enjoy new customer discounts. The combination of cheaper premiums, owning your data, and an increased sense of security while driving, in conjunction with a rewards program, has the potential to offer a consumer experience that outweighs the increased upfront costs.
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