Usage based insurance also known as “pay as you drive��? or telematics insurance is becoming increasingly common in the automobile insurance industry. Both customers and insurance companies like how insurance premiums can be tailored to the individual. No more blaming other drivers for your rates with usage based insurance – it’s all about how safely you drive.
What is usage based insurance?
Usage based insurance is when an insurance premium or discount is calculated by attaching a box or using an app that measures how and when you drive. This equipment uses GPS and an accelerometer to measure how much you drive what time of day you drive how often you rapidly accelerate and how often you have to rapidly brake. This information is then used to calculate your “risk��? as a driver accounting for factors such as driving during rush hour (when you’re statistically more likely to have an accident). Many companies such asIntactandPembridgeare simply offering customers a chance to earn a discount with this technology; your premium will not be raised from what it is currently.
Why choose usage based insurance?
Usage based insurance allows for a more personalized premium. It rewards safe driving habits and can save you money if you’re a good driver even if you happen to be in ahigher risk category(such as those first few years after you get your license).
Another benefit is you get a first hand look at your driving habits. Most insurance companies give you a platform online or via an app so that you can view your record. This allows you to improve your driving habits based on feedback from the usage based insurance technology getting you more discounts and lower premiums. It’s also great to measure driving habits of your newly licensed teen.
Is usage based insurance for me?
Companies like Pembridge Aviva and Intact are now offering this type of insurance coverage in Canada.Talk to your brokerabout a usage based ortelematic program. They’ll be able to advise you on which is best for you.