Patent ID: 8489433

Claim:
A system for estimating loss propensity of a vehicle and for providing driving information comprising: a loss propensity estimation server the server electronically obtaining information over a period of time from a telematics device installed in a vehicle; means for processing the information to determine at least one trip taken by the vehicle through a plurality of loss cost areas, each of the plurality of loss cost areas representing a geographic territory having a loss cost associated therewith; means for processing a plurality of loss costs corresponding to the plurality of loss cost areas through which the vehicle has traveled on the at least one trip relative to a garaging loss cost for the vehicle to calculate a numeric loss cost factor, said means for processing further comprises calculating a weighted average of the plurality of loss costs and dividing the weighted average by the garaging loss cost to calculate the numeric loss cost factor; and means for electronically transmitting the numeric loss fact to an insurer for subsequent use of the factor by the insurer in underwriting or pricing an insurance policy.