Car owners can quickly reduce their auto insurance rates with usage-based programs
LOS ANGELES, July 23, 2021 / PRNewswire-PRWeb / – UBI programs are becoming more and more popular with each passing year. The many benefits offered by UBI programs are tempting to drivers who want to pay less on their insurance premiums. But to pay less for their insurance, policyholders will have to allow their insurers to install a small telematics device in their vehicles. The thought of being watched can be scary for some, but for others UBI programs are a great opportunity.
Usage-based insurance programs have the following advantages:
- Get fast discounts. Typically, insurance companies rely on driver statistics and driving history before giving them discounts. Years of driving history had to be analyzed to determine if a driver deserved a discount. With a UBI program, insurers will install a small telematics device that will monitor a driver’s driving habits. This device will be installed for only 30 days, more than enough time for insurers to determine if a driver is eligible for a discount.
- Get a low mileage discount. Insurance companies consider that drivers who spend less time on the roads are less likely to be involved in crashes. And for this reason, they offer a low mileage discount. Typically, policyholders had to wait for renewal to find out if they were eligible for a low mileage reduction. With the help of UBI, drivers can obtain this reduction immediately after the end of the monitoring period. Of course, they also have to travel fewer kilometers than a certain limit to be eligible.
- Encourage better driving habits. Policyholders who know they are being watched and that every bad driving habit they have has the potential to increase their insurance rates are likely to adopt better driving habits. Also, good driving habits will lower insurance rates.
- UBI helps accident investigations. Investigators can find out more about the accident and who is responsible after analyzing the data recorded by the telematics device. Usually, the telematics device records useful data such as speed, acceleration, hard braking, direction and airbag deployment.
- Substantial discounts for teenagers. Teenage drivers are considered high risk and they pay a lot on their insurance. UBI programs can help teenage drivers with good driving habits get lower insurance premiums.
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