Usage Based Insurance– NextM2M

The future of insurance is here. It doesn’t make sense to pay for something you aren’t using. Like water consumption, electricity, and mobile data, drivers should only pay for car insurance based on how much and how they are driving.

Therefore, to help auto insurers revolutionize the way car insurance is priced, NextM2M offers the industry a Usage Based Insurance solution that includes driver behavior scoring. As an insurer, you want to increase market share, attract new policyholders, retain the best customers, and drive down the loss ratios. Usage Based Insurance is designed to make you reach exactly these objectives.

Usage Based Insurance is also typically referred to as Pay How You Drive or Pay As You Drive insurance. In common is, that the driver only pays for the kilometers they are driving and how they drive.

We provide insurance companies with a cloud-based technology using driving data for optimal pricing and tools for customer dialogue, thereby maximizing the opportunity for lower loss ratios and higher profits. This is an advantage for both the customer and the insurance company. The driver tends to be more aware of the driving style and tends to drive fewer kilometers than before. Please contact us for a solution for your telematics insurance solution.

Advantages of usage based insurance

For you as an insurer, there are huge advantages entering the Usage Based Insurance business:

  • Personalized app branding.
  • Intuitive and adaptable scoring model.
  • Frequent and engaging customer dialogue and feedback.
  • A robust and tested solution that id already running on more than 5.000 vehicles.
  • Customizable solution to fit your needs.
  • Opportunities for x-selling to existing customers and attracting new customers.
  • 24/7 support.

A NextM2M Usage Based Insurance lets you reap the benefits of telematics in the car insurance market.

All information about the driving can be accessed by the driver on the web or in an app. This also opens the possibility to interact frequently with the driver, giving good advice on the driving style, the score that works as the basis for calculating the monthly insurance fee, a gamification element, etc.

Other great smartphone app features are

  • Car Location (find your car easily via your smartphone app).
  • Driving Speed.
  • Driving Time.
  • Driving Behavior (a score is calculated on the driving style).
  • Distance Travelled.
  • Statistics (showing past driving).
  • Parking Meter (remembers when your parking ticket runs out).
  • Emergency Contact.

How M2M insurance works

A GPS tracking device is easily installed in the vehicles OBD connector. Most times this can be done by the driver without having to visit a car mechanic. All vehicles produced after 1986 are equipped with an on-board diagnostic connector (OBD). Data is only extracted from the vehicle; no data is loaded into the vehicles computer.

Security is key

Security is key in our M2M insurance. All data collected is heavily encrypted and stored in a cloud infrastructure. The backend system and platform are hosted by NextM2M in a data center or installed on own infrastructure if wanted. No personal information is stored anywhere; confidentiality is, of course, our highest priority.

Contact us

For a more detailed description of usage based insurance, please contact us at +45 70 226 223


The NextM2M Management Platform is a state-of-the-art solution for handling advanced M2M connectivity providing full flexibility for all your global connectivity services. The NextM2M Management Platform delivers global managed connectivity with one stop access to more than 650+ networks in 200 countries.