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Should You Switch to Usage-Based Auto Insurance?

During these strange times, you may be finding yourself using your car a lot less. You may be working from home, socializing less, and cooking at home more often. If that’s the case, then you may be wondering if you can save any money when it comes to your auto insurance in New Haven, CT now that you are behind the wheel less. That is where usage-based auto insurance comes into play. This type of policy bases rates around the telematics of your drive, and can help you save a lot of money – as long as you’re the right driver for the program.

 

What is usage-based auto insurance?

Generally speaking, regular car insurance premiums are estimations from the insurance companies about how you’re going to use your car, as well as additional factors. However, this can often result in people paying premiums that are way off their estimations. The usage-based auto insurance works by basing the premium on how often the car is used – using mileage as a deciding factor. Essentially, this insurance is calculated based on the actual usage of your car, and this can be a more structured and logical way of doing it.

 

Is usage-based auto insurance right for you?

Usage-based car insurance is becoming more and more popular because there seem to be many benefits for people. It is a much more modern form of insurance and embraces modern technologies that allow insurers to track their policyholders more closely. Companies can use a device plugged into the car or even an app on the phone to try and figure out how much insurance you are due to pay. The information collected will be used to work out and determine your bill. This will measure your mileage as well as how fast you drive, how hard you hit the brakes, where you drive, and the times of day you drive.

 

While there are many benefits to this coverage, drivers that opt for this coverage must be aware of the potential drawbacks. Due to the manner in which insurers collect your data and come up with a premium specifically for you, it means the less you drive, and the safer you are, the better it will be for your wallet. It also means the opposite is true – the more you use the car or the more reckless you are, the more your premium goes up. Sometimes, you can’t avoid using the vehicle or getting into an accident. If you stay within safe ranges set by the insurance company, you may be able to qualify for lower rates.

 

For example, if you drive fewer than 10,000 miles per year, never exceed 80mph, rarely drive at night, and brake with plenty of time to spare, you will pay less in premiums than a driver with high miles and a lead foot. Whether or not a usage-based auto insurance policy is right for you depends on what kind of driver you are.

 

All car insurance policyholders are looking for ways to cut the cost of their insurance without sacrificing coverage. Fortunately, you don’t have to whittle down your coverage to just the basics. There are many ways to save money, and deciding on whether usage-based auto insurance is right for you is the first step. You can also discuss discounts and deductibles with your insurance agent if you are keen to reduce your premium without giving up any coverage.

 

When the unexpected happens, auto insurance can step in to help. Take the time to review your auto insurance to ensure you have optimum coverage for your needs. Contact Abbate Insurance to get started on your tailored policy.

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