Best discounts apply to safe drivers who don’t drive a lot
KSNF/KODE — If car insurance premiums are becoming less budget-friendly these days, there is one insurance option that could possibly save you some of your hard-earned cash. However, there are some prerequisites that must be met to qualify: be a good driver and limit the amount of driving. If you meet these criteria, ‘use-as-you-go’ insurance may be a good way to save on car insurance premiums.
Usage-based insurance (UBI) is an option offered by some auto insurance companies that tracks your driving and can lead to cheaper auto insurance. UBI programs typically measure speed, acceleration, hard braking, distance traveled and hours of driving. Get your driving score and tips to improve your score. The better you drive, the more expensive your car insurance will be.
Inflation is one reason drivers are interested in usage-based insurance. Because it can reduce your car insurance premiums. More drivers are being offered usage-based or telematics options for auto insurance policies. His TransUnion survey, conducted in February 2022 and his March, found that 40% of respondents were offered telematics programs. This is up from his 32% in November 2021. He also increased the percentage of respondents who were offered telematics programs and opted in, from 49% to 65. %.
How metered insurance works
Usage-based insurance programs collect vehicle “telematics” data that comes from cellular, GPS, or other technologies. These programs track specific driving behaviors such as:
- speed
- acceleration
- hard braking
- hard cornering
- mileage
- Times of Day
- phone use while driving
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The technology used to track vehicle telematics data varies by car insurance company. According to Insurify, driving data is collected in the following ways:
- through systems integrated in the car, such as BMW ConnectedDrive and OnStar
- Via a device connected to the car’s on-board diagnostic (OBD-II) port, such as Nationwide SmartRide
- From smartphone apps like Allstate Drivewise and Farmers Signal
- By pairing a device called a “tag” installed on the windshield or rear glass, such as Liberty Mutual Insurance RightTrack, with a smartphone via Bluetooth,
Some insurers allow you to choose how your data is collected, depending on where you live. For example, Liberty Mutual Insurance RightTrack lets you choose tags, plug-ins, or your phone, while State Farm Drive Safe & Safe lets you choose a smartphone app or his OnStar system in your car.
How your driving habits affect your auto insurance premium varies by insurance company, but in a typical UBI plan, your driving habits are tracked for a period of time. After completing the initial review period, discounts may be offered based on telematics data.
UBI’s bottom line: The better the driver, the higher the discount. Drivers typically save 10% to 15% annually on usage-based insurance. Many large auto insurance companies offer usage-based insurance, but it’s not available in all states. Make sure you understand the program rules before signing up. You want to know exactly what driving behavior is being measured and how driving affects your car insurance rates.
More information on usage-based insurance, including the companies that provide the insurance, can be found here.