Paydrive

About Paydrive

Paydrive, founded in 2012 by Andreas Broström and Carl Johan Thorsell, offers digital, pay-as-you-drive car insurance. The company's business model is centered on a usage-based approach where the insurance premium is directly linked to the customer's driving behavior, which is monitored via a telematics device plugged into the car's OBD port. This device, along with a mobile application, provides drivers with feedback on their driving style, including speed, braking, and acceleration, encouraging safer driving habits and potentially lowering their insurance costs by up to 50%. Initially bootstrapped by the founders, Paydrive later secured a significant investment of SEK 10 million in 2017 from a group including Chalmers Ventures, Collector Ventures, and former professional ice hockey player Elias Bååth, who also joined the company's board. This funding was aimed at accelerating growth within Sweden. The company's primary market is Sweden, where it challenges traditional insurance providers with a more flexible and personalized insurance model. The target audience includes car owners who drive less frequently or are keen on reducing their premiums through safe driving. The insurance policies are underwritten in partnership with Gjensidige Försäkring. Keywords: usage-based insurance, pay-as-you-drive, telematics, insurtech, car insurance, safe driving, digital insurance, OBD device, mobile app, risk reduction