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- Idea Of The Day - Build this: Insurance that doesn’t punish you for being a decent human driver.
Idea Of The Day - Build this: Insurance that doesn’t punish you for being a decent human driver.
Needs To Exist
April 04, 2025
GM. This is Needs to Exist (aka NTE), delivering you a startup idea that’ll make your auto insurance actually make sense.
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Here’s what we’ve got for you today.
Daily Idea - Drive. Track. Save.
Price Based Behavior
Drive better. Pay less. Finally.
The One Liner
Insurance that charges you how you actually drive.
The 140 character tweet (or X) version
Still paying the same premium as your reckless neighbor? This AI-powered marketplace gets you insurance priced by how you drive—not the average Joe.
The Longer Story Version
The Problem
Traditional car insurance is like a buffet for a picky eater—overpriced, inefficient, and never really what you need.
You drive once a week, your neighbor drifts around corners like Fast & Furious… but you both pay the same premium. Why? Because old-school insurance lumps everyone into the same box.
For most of us, it means we’re either overpaying or under-covered. And insurers? They're flying blind with 10-year-old data and vibes.
It’s 2025. Why are we still doing risk assessments like it’s 1995?
The Solution
Let’s flip the game.
Imagine a marketplace where your insurance is priced by the mile, by the move, by your actual behavior.
You drive safe? You pay less.
You drive smart? You get rewarded.
You take the subway more than the wheel? Congrats—you’re not subsidizing the maniacs.
Here’s how it works:
Plug in your car’s telematics (built-in or via dongle like High Mobility or Targa Telematics)
AI crunches your real-time data—speed, braking, mileage, weather, even time of day (yup, night owls get flagged)
Marketplace connects you with insurers who want you, specifically you—not “average driver #5421”
Think of it like a dating app, but for your car’s risk profile.
And for insurers? It’s a goldmine. They get hyper-targeted customers, fresh data, and lower fraud risk.
Bonus tools for the builders:
How We’d Build It
Why It Needs to Exist
Because paying the same rate as a guy who street races to Chipotle is highway robbery.
This isn’t just insurance—it’s financial accountability, environmental incentive, and tech catching up to reality.
For young drivers, Uber drivers, fleet operators, or anyone who’s tired of the one-size-fits-all scam that is legacy insurance… this is the reset button.
You shouldn't have to beg for fairness. Just plug in and drive better.
Let the algorithms do the rest.
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Price Based on Real Behavior
Most industries price based on averages.
What’s the average user like? What’s the standard rate? What does the "typical" person do?
That worked in a world where data was hard to collect. But now? We’ve got sensors in pockets, smart devices in homes, and AI that can analyze behavior in real-time.
Which means the smartest products of the future won’t price you based on who you are (age, zip code, job title)…
They’ll price you based on how you behave.
The Core Idea:
“Behavioral pricing” is the new personalization.
It’s not just about tailoring the experience, it’s about tailoring the cost based on usage, intent, consistency, quality of action, etc.
Think of pricing not as a static label, but as a feedback loop.
Use it to reward the right behavior, nudge good habits, or filter out low-value users.
How to come up with ideas using this lens:
Ask yourself:
What industry still charges everyone the same?
Think gyms, streaming services, therapy, education, parking, car rentals.
What behavior actually reflects value better than identity?
Is it how often someone shows up? How well they perform? How respectful they are?
How can you track that behavior easily today?
Use existing tools: GPS (via Tive), mobile sensors, browser actions, smart badges, APIs.
Could pricing create a better product experience?
Imagine if you paid less for completing courses, more for procrastinating, less for showing up on time, etc.
Tools to help build behavior-based pricing:
PostHog / Heap – app usage analytics
Kisi – behavior-driven access in the real world
Rewardful – referral-based dynamic pricing
Stripe Billing – flexible pricing models
June.so – product usage analytics for feedback loops
Examples (go build one):
A parking app that charges more the longer you idle
A calendar booking tool that rewards people for showing up on time
A freelance platform where top-rated clients pay lower fees
A fitness membership that drops your price every week you show up
An education app that refunds you based on lessons completed
Behavior-based pricing isn’t just fairer.
It builds better users, better businesses, and better outcomes.
It’s the difference between charging by the seat… and charging by the impact.
One More Meme
