Usage-Based Auto Insurance

Policies Appealing to Consumers

Security with Coverage OptionHow would you like to keep the

same insurance coverage, but

only pay for auto

insurance when you’re actually

driving your car? Well, believe it

or not, that could be a money-

saving option for motorists in

the future. A recent new report

shows that the technology,

called telematics, has been

seeing strong growth with a

rapid increase for demand

among consumers in the

coming years.

Usage-Based Insurance

The technology, which has led to thecreation of usage-based insurance (UBI)policies, is used by insurers to track apolicyholder’s information when he’sbehind the wheel. Drivers commonly payfor these policies, which are often lessexpensive, only when they use them. Inother words, only when it is determinedthat, through the telematics, thepolicyholder is driving. The quest for newproducts for the insurance industry tooffer consumers has raised the demand,particularly among auto insurancecompanies.

Annual Increases

According to the report, theavailability of usage-based policieswent up by 4 percent by the end of2013, and telematics is expected togrow by as much as 80 percentthrough 2018. This, in part, will bedue to rapid adoption of usage-based auto insurance in the U.S.,United Kingdom, and Italy.Furthermore, the discounts thesepolicies will offer consumers arebound to be an appealing draw togive them a try.

TelematicsWith governments beginning to support

the implementation of telematics as a

means to monitor a policyholder’s

driving movements and the willingness

of the consumer to give up a little

privacy to save some money, usage-

based insurance should become

extremely popular. As a matter of fact,

several automakers are releasing

vehicles equipped with telematics,

anticipating an upcoming greater

demand and allowing for faster growth

of the technology, which could become

the norm within the auto insurance

sector.

The ConceptPrivacy concerns aside, the benefits of UBI far exceed the money savings. It encourages safer driving practices by keeping policyholders more focused on the road rather than possible distractions. One accident or moving violation could nullify the entire program for the driver, thereby, canceling their usage-based policy. For that reason, usage-based auto insurance provides good reason to be extra-careful behind the wheel, by not speeding, following too closely, or running red lights and stop signs.

UBI AwarenessIn the end, it could make

safer drivers out of all of us.

As the awareness of UBI

becomes more universal,

drivers will begin to realize

the value of driving safely,

not to mention the savings

auto insurance companies

claim they’ll be offering

policyholders as a reward

for letting them keep an eyeon their driving habits.

Plans For The FutureObviously, some drivers will

be unwilling to give up their

privacy and hand it over to

Big Brother, but most

advocates of the program

expect those consumers to

eventually come around as

many of their peers will

adopt the program to savemoney.

Privacy ConcernsIn fact, a recent survey

conducted by Towers

Watson determined that

American drivers were less

concerned with their privacy than

they were with the attractiveness

of getting a good- sized price

reduction on their auto insurance

premiums. So, it appears that

usage-based insurance policies

are a sign of the not-too-distantfuture.

Contact UsHow do you feel about giving

up your privacy to save money

with usage-based insurance?

Be ready for is making sure

you’re getting the best rate on

your auto insurance. Why not

get a free auto insurance

quote today?

Why not get a free auto

insurance quote today?

Let us assist you!