Telematics provider Octo Analytics is introducing DriveAbility SaferDriverWithRewards, a program that allows insurers to reward drivers monthly based on recent driving behavior.

“We envision this program enabling insurers to allocate monthly reward points to participating drivers based on driving performance, with rewards delivered as gift cards, merchandise, or other incentives.”

The program uses a modified version of Octo’s DriveAbility 3.0 scoring model, focusing on behaviors drivers can control, including phone distraction, braking, cornering and driving smoothness. Unlike the company’s premium-rating score, it excludes exposure factors such as mileage, time of day, weather and road type. It also shortens the scoring window from a rolling 100 days to a calendar month.

Insurers can determine how points are converted into rewards and set the maximum value available. Although Octo describes the primary use case as a rewards program separate from premiums, participating carriers may also use earned points to determine premium discounts, subject to their own filings.

Octo has filed the program across personal and commercial auto in at least 12 jurisdictions: Arkansas, the District of Columbia, Illinois, Iowa, Maryland, Minnesota, Missouri, New Mexico, Oklahoma, South Dakota, Texas and Wisconsin. Most filings have already been cleared, while filings including Texas and parts of Maryland remain pending.

Bottom Line: Traditional telematics asks drivers to trade data for a possible renewal discount. Octo is proposing something more immediate: drive better this month, earn something next month.