If you are like many consumers in California, Oregon, Nevada or Arizona, you look for ways to save on your insurance costs. One way auto insurance carriers reduce rates is through usage-based insurance. Although some experts recommend this route to minimize premiums, doing so can backfire if you don’t meet the company’s requirements. Avail Insurance Solutions LLC can help you understand what usage-based insurance entails.
Technology Determines Your Rate
The initial rate of a usage-based insurance policy uses traditional factors to determine a premium. These traditional factors include age, vehicle type, location and driving record. However, once you agree to a usage-based policy, the information collected will significantly affect your rate.
How It Works
Once you agree to a usage-based policy, you will need a plug-in device supplied by your insurance carrier or a smartphone app to track factors like mileage, speed, braking, acceleration, and time of day when you travel. The insurance company uses these factors to determine your risk level and may offer discounts for safe driving behaviors. Data collected includes how safely you operate your vehicle, which can include information such as hard braking, rapid acceleration, and hard cornering. Some programs even monitor cell phone usage and airbag deployment.
Usage-Based Insurance Can Backfire
Most drivers who haven’t had an accident or a traffic ticket in years generally consider themselves safe drivers. After all, even state facilities authorizing licenses consider these facts. Nevertheless, insurance companies evaluate your driving habits and may reach a different conclusion. If you drive over the speed limit, accelerate too quickly or violate other parameters, they may deem you a risk. Your premiums could increase.
The agents at Avail Insurance Solutions LLC can help you determine if usage-based auto insurance is right for you. Contact one of our offices serving California, Oregon, Nevada or Arizona to get more information.