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Why Get Usage Based Car Insurance

You may have heard about “usage based insurance” or UBI and asked if it’s right for you. Essentially, UBI is technology called telematics that monitors your actual driving behavior and experience and then sends it to the insurance company for analysis. It may be a device installed on your car or on your phone. It can measure many variables, including what, when, where, and how you drive. The collected data is used by insurers to help determine the cost of your premiums. Find out why get usage based car insurance and how to get auto insurance cheap.

920x920Recent studies and survey,  performed and published by  leading global advisory, broking and solutions company Willis Towers Watson’s (NASDAQ: WLTW) show that drivers are likely to buy a new or pre-owned vehicle equipped with new technology features. The survey examined how the spread of in-car technologies and connected cars is influencing consumers’ buying behaviors and attitudes toward UBI. The survey found that a large majority (81%) of the roughly 10% of drivers who have or have had a UBI policy to date are very positive about its benefits.

There are several variations of UBI including pay-as-you-drive, pay-how-you-drive, pay-as-you-go and distance-based insurance. These options are different from how insurers charge for traditional auto insurance.  A UBI program adds individual driving behaviors as an additional rating factor. By tracking data, good or infrequent drivers will pay less. This could also bring huge benefits for businesses in managing fleets insurance costs.

UBI also can encompass “pay-as-you-drive” insurance which only charges a customer based on actual miles driven. For example, you own a car in a big city but rarely drive it. Such a policy wouldn’t bill you for the time it sits idle in a garage. You will actually save a lot of money, when compared with a traditional policy.

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