The COVID-19 pandemic has affected the lives of all Americans. Given the current situation, most Americans are doing their best to save money. Nowadays, more and more drivers are switching to usage-based insurance programs. The surge in popularity for usage-based car insurance policies in this period is not surprising. Drivers who were affected by the current crisis can save money on their car insurance if they switch to a usage-based program.
UBI insurance is a relatively new type of insurance. It relies on data transmitted by onboard devices. After analysing the data, insurance companies will re-evaluate the risk profile of a client and adjust rates.
These are UBI’s main features and benefits:
As the name suggests, UBI rates rely on the way the driver uses his car. More exactly, rates will fluctuate depending when and where it drivers, how it takes curves, how he brakes, maximum speed and other related parameters.
UBI policies have become popular in the recent years. It is a top choice for people considering themselves good drivers. Safe drivers who want to keep their premiums low or even lower them can always talk with their insurance providers and check for available UBI programs.
Many insurance providers are offering discounts for using telematics. Telematics are devices that track the driver’s behavior, allowing the insurance company to provide a customized quote based on the driver’s measured risk factor. Insurers like Allstate or Progressive are offering discounts of at least 5% just for agreeing to install a telematics device. However, drivers who have a very low measured risk factor can get a discount of up to 40% or 50%. Drivers who drive fewer miles than average drivers, or drive outside of busy rush hour traffic, might be considered to have a lower risk factor.
UBI insurance provides several financial benefits. If the driver meets the insurer’s expectations, he will be greatly rewarded. Drivers will have access to customised rates that will lower the insurance costs.
Tips on improving driving skills. Another advantage is the instant feedback that a driver receives after data is analysed. This will help driver understand his mistakes and improve his driving habits.
Recover stolen vehicles. Since UBI policies rely on installed tracking devices, once the insurer is notified that the car is stolen, it can access the device and pinpoint the location.
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