Are You Aware With Pay-As-You-Drive Insurance?

By siliconindia | Monday, 21 September 2015, 10:47 Hrs

There are worthy discussion questions and arguments about the usage based insurance.

For many years now, car insurance organizations have filled the nation with the television advertisements, beseeching customers to register for what is generally called pay-as-you-drive insurance, even though some on the market choose to phrase it as a "usage-based insurance.” Even some people also refer such insurance as telematics that describes the combined use of technology along with the information.

The actual concept behind the pay-as you-drive insurance is that if you are as a good of a driver as you introduce to your family and friends, you should definitely not mind to attaching a device to your car-normally your auto's onboard diagnostics port– that gathers information about how you drive, as an example how hard you break and do you need to have something of a lead foot.

Have you signed up? After all, while these devices were once something of a curiosity by the time they are becoming more a mainstream. Last year, based on the survey by a Nexis Risk Solution almost 1 of the 3 customers are aware with the usage of pay as you go insurance. It was also projected that by the end of the year they would be around 8 million cars making use of these devices.

So, let me clear your understanding with the gadgetry, but still have questions, so let’s have a look at some of the answers.

· Who provides such pay-as-you-drive insurance?

There are some of the big players like Allstate, Progressive, Travelers, State Farm the Hartford, Safeco and GMAC. Even an organization offers you such insurance, but still they won’t provide this service in your territory. Each state has its own rules and regulations based on that pay-as-you-drive or usage-based insurance is being offered.

·How much does a driver can save making use of such devices?

Generally, insurers promise individuals who they'll save anywhere from 20 to 50 %; just how much is determined by your insurer. Some insurers offer an instant discount, usually 5 or 10 %, for simply installing the device.

· Loosing this device is a loss of money?

In case a driver loses money, the insurers don't mention it in their marketing and any company spokespeople may flatly say the consumer won’t be charged more money or get rid of their policy, by making use of these devices.

· What exactly does this device considers and measure?

It completely depends on the corporation, but most measure a car's speed, the time of days or night that driving is conducted and probably the mileage.

There is also a specific limit how much does this device track. As an example, says, at least with car insurance Edmonton driver wise program, if you are driving 10 miles faster than you would be about 45-mile-per-hour zone, for your device it would be tough to recognize or identify that.