You’ve been driving for 2, 5, 10, or even 20 years without much issue (apart from maybe the odd fender bender or not-at-fault incident here and there), but you’ve noticed your auto insurance rates have increased. What gives? You’ve been a good driver, so why should you be paying the price?
Auto insurance rates increase for any number of reasons, and sometimes those reasons are out of our control – like owning a high-theft vehicle. Luckily, you can leverage your good driving behavior and even qualify for discounts on your insurance. Here’s how:
What is usage-based auto insurance?
Imagine this: your auto insurance prices are tailor-made based on how you drive, rather than being out of your control due to factors you cannot control, such as your location or age. This is essentially the description for usage-based auto insurance, an offering that many insurance companies are now making available to their policyholders in order to allow more control over their rates.
Usage-based auto insurance, also known as telematics insurance, is named because it uses a device—a telematics device—to track a user’s driving behavior. A user will either need to download a mobile application or install a device in their car that records certain aspects of their driving behavior, such as the following:
- Braking time
- Acceleration rate
- Speed
- How far you drive
- How long you drive for
- Idling time
- Etc.
For good drivers (hopefully such as yourself) it means that if you consistently demonstrate safe driving behaviors, such as avoiding sudden stops, obeying speed limits, and driving during less risky times of the day, you can be rewarded with lower premiums. Depending on the insurance company, discounts can vary – but they can sometimes be up to 30%!
Why participate in usage-based driving?
There are several benefits to participating in usage-based driving.
For one, it offers fair pricing. Traditional auto insurance often relies on demographic factors like age and location to determine premiums. With usage-based insurance, your risk is assessed based on individual driving behavior. This means that safe drivers are rewarded with lower premiums, ensuring that you pay a fair price based on your actual driving habits rather than generalized statistics.
The better your driving, the stronger your potential is for savings. By consistently demonstrating safe driving habits such as obeying speed limits, avoiding sudden stops, and driving during less risky times, you can qualify for discounts and lower rates.
And, if you’re a semi-decent driver who is looking to be even better and increase your good driving habits, telematics can incentivize safe driving practices. Knowing that your driving behavior directly influences your insurance costs can be a powerful incentive to drive more responsibly. Usage-based insurance encourages safer driving habits, such as avoiding distractions, following traffic laws, and maintaining a safe distance from other vehicles.
Finally, usage-based driving can also offer you direct feedback and insights into your driving behavior. By reviewing this information, you can identify areas for improvement and become an even safer driver. This feedback loop promotes continuous learning and helps you maintain good driving habits over time.
In short, here are some reasons to opt into usage-based auto insurance:
- Receive fair pricing based on actual risk
- Get access to additional benefits and rewards for good driving practices
- Enjoy transparency in insurance pricing based on real-time data
- Flexibility to adjust driving habits to lower insurance costs
- Receive feedback and insights to improve driving skills
- Have the potential for lower premiums based on individual driving behavior
Are you a good candidate for usage-based auto insurance?
Participation in usage-based auto insurance is ideal for drivers who prioritize safe and responsible driving habits. If you’re a cautious and conscientious driver who obeys traffic laws and has an overall decent safe driving record, then it can be hugely beneficial for you. Here are some examples of individuals who would be good candidates for usage-based auto insurance:
- Experienced drivers
- Defensive drivers
- Low-mileage drivers
- Eco-conscious drivers
- Seniors with safe driving practices
- Teens with responsible habits
- Drivers looking to hold themselves accountable
If you’re seeing high rates due to a recent at-fault accident or have been labelled high-risk, but you’re otherwise a good driver, usage-based auto insurance can help combat the inflation in your rates.
Get rewarded for good driving with AHI Group
Want to be rewarded for good driving behavior? Contact AHI Insurance. Our agents would be happy to discuss your insurance needs with you and assess whether usage-based driving is the right choice for you. Insurance is unique, and no one’s needs are exactly the same. This is why it helps to have an agent in your corner who can help you make the tough decisions and find you the best auto insurance protection for the best price. Give us a call today.
