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What is Usage-Based Car Insurance?
Usage-Based Car Insurance (aka Telematics) is where you let the Insurance Company monitor your driving habits so you can qualify for safe driving discounts on your Car Insurance Policy.
People are driving less and are less likely to be driving late at night, so by embracing Usage-Based insurance, consumers can capture meaningful savings on their Car Insurance premiums.
WHAT COMPANIES OFFER USAGE-BASED INSURANCE?
- Travelers have a program called Intellidrive.
- Progressive’s program is called Snapshot.
- Safeco’s program is called RightTrack.
- Mercury offers low mileage discounts through their Real Drive program.
HOW DO INSURANCE COMPANIES MONITOR YOUR DRIVING?
Car Insurance Companies monitor your driving by the following ways:
- By a device plugged into your car. (Progressive and Safeco)
- Via a Mobile App on your phone. (Travelers, Progressive and Safeco)
- Simply reporting the actual mileage you drive in a year to the Company. (Mercury)
WHAT DO USAGE-BASED PROGRAMS TRACK?
- Usage-Based Car Insurance programs track any or all of the following driving habits:
- Time of Day you drive. Are you driving late at night or during rush hours in heavy traffic?
- The speed you normally travel. How fast or slow you drive.
- Amount of time you are driving. How long you spend on the road each day.
- How much hard braking you do. This usually occurs when driving in heavy traffic.
- How many miles you travel in the car.
HOW MUCH MONEY CAN YOU SAVE BY TRYING A USAGE-BASED INSURANCE ON YOUR CAR POLICY?
It varies but most companies offer anywhere from 5 to 30% savings for using their Usage-Based programs. It depends on how you drive.
If you qualify for all the discounts, you can save closer to the upper end of 20-30 % on your car insurance. If you only qualify for a few it would be closer to the lower end of 5-10%.
Most companies will offer you a discount for just signing up for their program. So give it a try.
Telematics or Usage-Based Car Insurance is just coming into its own in 2021, but will become a common element in the future of Car Insurance.
Are you driving less during Covid? Contact our licensed agents and see if Usage-Based Car Insurance is for you!
Low Rates, Choice of Companies and Personal Advice from Local Agents,
Cronin Insurance is the Wise Choice.
