Hyundai Launches Usage-Based Insurance – Rewards Safer Driving

Driving behaviour recorded through Bluelink will determine a personalised score, which participating insurers can use to offer benefits at renewal

Hyundai Motor India has introduced a Usage-Based Insurance (UBI) programme for eligible customers with Bluelink-connected vehicles. Announced in association with partner insurers, the initiative could help customers save on their insurance renewal premium based on their driving behaviour.

How Hyundai’s Usage-Based Insurance Works

The programme uses vehicle data recorded through Bluelink to generate a personalised driving score. This score is calculated using driving behaviour from the previous three months, assessing parameters such as rapid acceleration, rapid deceleration, braking, speed control and idling.

Since the information comes directly from the connected vehicle, customers do not need to install an additional tracking device. They can view their UBI score, check eligibility and choose whether to share the score with participating insurers through the Bluelink app.

Hyundai India Insurance Broking (HIIB) will act as an intermediary, facilitating the sharing of customer-consented driving scores between Hyundai and the insurance partners. Insurers will then use the score during underwriting to determine potential benefits at policy renewal.

Score Of 70 Or Above May Unlock Benefits

Customers whose insurance renewal is due within the next 90 days will be able to view their score and explore potential insurance benefits. A UBI score of 70 or above may qualify for benefits, subject to the insurer’s underwriting policy and conditions.

Customers with scores below the threshold can use personalised driving tips to improve their driving behaviour and potentially become eligible for benefits. However, Hyundai has not disclosed a detailed score-to-discount structure.

The potential saving applies specifically to the own-damage premium. It should therefore not be interpreted as a flat 15% reduction in the total insurance bill. The release also does not specify whether a lower driving score could affect the renewal quote.

Three Insurance Partners In Phase One

The initial phase includes Cholamandalam MS General Insurance, Go Digit General Insurance and ICICI Lombard General Insurance. The programme will be available to eligible customers across Hyundai’s Bluelink-connected product portfolio, with upcoming insurance renewals falling within the eligibility window.

Hyundai Targets One Million Connected Cars By 2027

Commenting on the announcement, Tarun Garg, MD and CEO, Hyundai Motor India, said the company already has more than eight lakh connected cars on Indian roads. Hyundai is targeting one million cumulative connected-car sales by 2027, with an ambition to reach two million by 2030.

The company has also been expanding its Bluelink ecosystem through initiatives such as Digital Passport for vehicle health insights and Remote Immobilizer for security. With UBI, Hyundai is linking driving behaviour to potential ownership savings. For customers, the actual benefit will depend on their driving score, eligibility and the renewal offer provided by the participating insurer.