One of the biggest complaints about car insurance is that premiums are based on liability related to a person’s peer group. Higher risk groups, like new or young drivers (check out isure’s advice for Young drivers ), tend to pay very high premiums. Now, with the use of Telematics Insurance or Usage-Based Insurance (UBI), premiums can be priced based on one’s own habits.
Telematics Insurance involves the installing of a simple device that provides feedback regarding a driver’s braking, cornering, speed and overall driving habits. For young and new drivers, the feedback also allows them to practice safer driving habits. The feedback can also offer tips for better mileage and proper car maintenance to the car owner.
Telematics Insurance would also allow for drivers with blemished driving (check out isure’s advice for the bruised insurance recoverer ) records to pay less for coverage. Right now they typically have to pay very expensive “high risk” premiums that at times are too expensive to maintain. With the implementation of a telematics device, they can prove that they practice safe driving on a regular basis and may be eligible for cheaper premiums than what they would have had to pay in the past.
Usage-Based Insurance is the future of risk analysis
With the advancements of technology, the days of premiums based on peer analysis and group risk rating will begin to fade away. Usage-based insurance will offer premiums tailored to a person’s actual habits and tendencies, their own attention to safety and will promote safer habits.
This type of billing is becoming more popular with Life Insurance as well. People who practice healthier habits like regular exercise, a regular sleep schedule and don’t smoke pay better premiums for their Life Insurance coverage.
Of note is the fact that this type of billing involves the sharing of more information than you normally would share with your insurance provider. Some may feel hesitant to provide this information. While it is pertinent to always be vigilant in how your personal information is used, in this case it is important to take note that your information is only used in its simplest form to allow for more accurate and fair premiums.
isure works with 25+ certified insurers to give you access to one of the largest selection of best insurance company policies and options in Canada in the field of Telematics insurance. Learn more about isure telematics insurance by clicking here.
BTW , businesses having fleet business vehicles on the road can also benefit from Telematics insurance by allowing fleets to keep closer tabs on their vehicles for insurance pricing discounts – and improved safety; Click here to learn more.