Choosing the Best Use-Based Auto Insurance

In recent times, most of the top US car insurance companies have introduced policies that are based on the way motorists are actually used to driving. Switching over to use-based car insurance could be highly beneficial to you as it would mean saving a little or quite a lot in terms of premiums in comparison with those associated with conventional insurance policies.

Understanding the Implications of Switching to UBI Plan

Carriers are used to setting UBI rates simply by accumulating mileage information and other important data directly from your vehicle but there are no more similarities between the various user based insurance policies. Some insurance companies are using a small effective electronic device that looks like a meter for tracking, storing or transmitting relevant information. According to the latest versions driving information is gathered via an app or a smartphone that is connected to your vehicle’s telematics system or infotainment.

Moreover, drivers are more than happy to allow access to their unique driving habits to ensure lower insurance rates. However, advocates of privacy are concerned that the insurance firms are not fully transparent about the information they are collecting, what they would actually be doing with that data and with whom they would ultimately be sharing it.

Here are some effective steps that you need to take while shopping for vehicle insurance and concentrating on use-based policy.

Know What All Is Available

Browse through the website of consumer advocacy agency or state insurance commission and identify insurance carriers that are licensed to function in your area. Alternatively, you could browse through websites of auto insurers and start by typing in your ZIP code and find out if they would be selling UBI plans.

Understand Kinds of Information Collected by Insurers

Some states are known to restrict the data insurers could collect and that limits the kinds of UBI policies offered to you. For instance, in California, insurance companies could feel free to track mileage, but they are not allowed to monitor when or where you are driving. These insurance companies are barred from recording how fast you are driving or monitoring how many times you are slamming on the brakes.

You could visit websites of state insurance regulators and look for their explanations regarding the UBI plans. You must always read the fine print regarding UBI policies on the websites of insurers for determining precisely what driving information an insurer goes about collecting and the method he uses to gather such information.

Learn About Determination of Discounts

You must consider understanding clearly how insurers actually determine discounts. Insurers could be offering a mere 5 to 10% introductory discount during the trial period but would be adjusting the rate after monitoring driving behavior and mileage for a fixed period of time. Many insurance companies consider six months of your driving information and data.

Go for a UBI Bundle

Many insurers are used to offering Use-Based Insurance plans as an integral part of a package or bundle of services attached to a vehicle’s built-in entertainment, maintenance or safety systems. Some insurers provide mileage-based insurance policy with mobile phone service and stolen vehicle assistance.

Evaluate Your Performance

It is important for you to see how exactly you are doing. You could sign up and browse through the web portal relating to your UBI policy for monitoring how you are driving. Some insurers’ dashboards offer customers a specific grade depending on their driving skill and habits. For instance, customers of a reputed insurance company are allowed to download an Android or iPhone app for looking up mileage, hard stops, speed and the specific times of the day they are driving.

Author Bio: Evans walsh is an insurance agent and consultant working in the private vehicle insurance sector. He loves helping his clients and runs a blog as well. He has an impressive fan base.