In use-based car insurance (also known as pay-as-you-drive), your insurer collects different forms of data on your driving habits and uses the data to calculate your insurance premium. Some motorists are hailing use-based insurance as the new way to enjoy auto insurance discounts. This may be true, but only if you are a good driver and know how to shop for the right package. Here are a few tips you can use while shopping for use-based auto insurance:
Know the Data to Be Used
The first thing is to determine what kinds of data the insurers in your state are allowed to collect. You should also know which of these allowed data your insurer of choice has elected to use. If you don’t, then you may end up buying a policy that doesn’t favor you in terms of data collected.
For example, some states do not allow insurers to collect information on where you drive. Therefore, if you drive in areas considered “safe,” then you may not be able to cash in on this data in such a state. Contact your insurance agent or website to know the kind of data they collect and use. Alternatively, you can also get the information from your state insurance regulator.
Go For a Trial Run
Do you know that you may not be fully aware of your driving habits? For example, do you know how fast you accelerate or break? What about cornering? Do you cut it too close? These are some of the data that insurance companies monitor.
If you want to know your driving habits in detail, then you should sign up for the trial runs that many auto insurers offer. You will be given a monitoring device to hook up to your car’s diagnostic port for a limited time. You can then view your performance using a mobile application on a confidential web portal.
Evaluate Bundled Packages on Offer
You will be glad to know that some insurers bundle their pay-as-you-drive insurance options with other offers to give their clients further discounts. These bundles are packaged to keep your car as safe as possible. For example, you may be given the option to buy a use-based insurance option packaged with a stolen vehicle assistance program. Consider the packages available and choose the most suitable one for your case.
Pay-as-you-drive insurance looks promising because it uses the actual metrics of your driving habits to calculate your premiums, and not industry-wide metrics that may not reflect your true position. If you are a safe driver and a smart shopper, then there isn’t any reason you shouldn’t benefit from these use-based auto insurance packages. Speak with specialists like Randy Yates Insurance Agency for more information.
Know the Data to Be Used
The first thing is to determine what kinds of data the insurers in your state are allowed to collect. You should also know which of these allowed data your insurer of choice has elected to use. If you don’t, then you may end up buying a policy that doesn’t favor you in terms of data collected.
For example, some states do not allow insurers to collect information on where you drive. Therefore, if you drive in areas considered “safe,” then you may not be able to cash in on this data in such a state. Contact your insurance agent or website to know the kind of data they collect and use. Alternatively, you can also get the information from your state insurance regulator.
Go For a Trial Run
Do you know that you may not be fully aware of your driving habits? For example, do you know how fast you accelerate or break? What about cornering? Do you cut it too close? These are some of the data that insurance companies monitor.
If you want to know your driving habits in detail, then you should sign up for the trial runs that many auto insurers offer. You will be given a monitoring device to hook up to your car’s diagnostic port for a limited time. You can then view your performance using a mobile application on a confidential web portal.
Evaluate Bundled Packages on Offer
You will be glad to know that some insurers bundle their pay-as-you-drive insurance options with other offers to give their clients further discounts. These bundles are packaged to keep your car as safe as possible. For example, you may be given the option to buy a use-based insurance option packaged with a stolen vehicle assistance program. Consider the packages available and choose the most suitable one for your case.
Pay-as-you-drive insurance looks promising because it uses the actual metrics of your driving habits to calculate your premiums, and not industry-wide metrics that may not reflect your true position. If you are a safe driver and a smart shopper, then there isn’t any reason you shouldn’t benefit from these use-based auto insurance packages. Speak with specialists like Randy Yates Insurance Agency for more information.
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