Is Usage-Based Car Insurance Right For You?
Usage-based car insurance programs have been talked about on television commercials for the past few years. Companies are promising to reward drivers with good operating habits with lower rates. These companies utilize a plug-in device to track a person’s driving in order to make their assessment.
Plug-In Devices Track Your Driving Habits
Companies promote these plug-in monitoring devices like crazy. All their advertisements are focused on what drivers will receive in savings. They explain that having feedback from your car insurance company is a great way to help improve your safe driving habits. Most lead on to their customers that the worst that could happen is their driving is deemed unsafe and they are not eligible for the discounts.
However, many consumers are still wondering if there is a potential catch that is just not said up front on the advertisements. The only company as of 2015 that implemented any sort of charge for those with bad driving habits was Progressive. This car insurance company instituted surcharges to their customers who were deemed to have aggressive driving habits. Those charged were limited to a couple of states that were part of the initial rollout program for this car insurance provider.
When other major Car Insured with Youi providers were asked about the potential of surcharges for aggressive drivers, they responded that they were not as of yet instituting any. However, the potential still exists for this to happen in the future as companies continue to gain perspectives on how to reduce payouts and boost their bottom line. Many experts guess that it won’t be too long before other car insurance providers opt for charging those not-so-safe drivers.
With this valuable information, it’s important to assess your own driving abilities. Even if you are not worried about surcharges that may be implemented in the future, you should be worried about cashing in on the safe driving discounts that are available. By paying better attention to your daily habits, you can work on safer ways to travel down the road.
What Does The Future Hold For Usage Based Car Insurance?
As we discussed above, the possibility of most insurance companies switching to charging surcharges for those who drive aggressively is very likely to happen in the future. Another change that experts are predicting is that usage-based insurance will be the new driving norm. This means that individual drivers who choose not to participate in the safety program will most likely be charged a higher rate for insurance.
It’s important to realize that insurance companies are in business to stay there. They are always looking for new ways to reduce their risk of insuring drivers. The usage-based insurance is a new trend that is catching on. In reality, if one is watched regularly through the plug-in device they are more likely to adhere to the proper driving safety rules. This means there is less of a chance for an accident to occur. This all boils down to the fact that insurance companies can likely reduce the money they have to payout for claims when they have customers utilize a usage-based policy.