A phone app tracks driving habits and gives individuals a score and tips, according to Geico’s website. While Geico has historically offered discounts to drivers for staying accident-free for five years, the app would be more interactive, using the phone to track trips. Rivals including Progressive Corp., which Buffett has called “well-run,” and Allstate Corp. have long used programs to track drivers and encourage better behavior.
Zaremski has previously said that he estimates Progressive’s policies that use telematics, the technology to collect information about driving habits, are 15% to 25% more profitable than the ones that don’t. Geico was expected to introduce its own offering to avoid ending up with the less-profitable clients who other insurers don’t want, he said Tuesday in a note.
A Geico representative didn’t have an immediate comment about the program.