DriveFactor announces usage-based car insurance program expansion for cheaper premiums

Discount-Car-Insurance

Discount-Car-InsuranceDriveFactor, formerly called Crimson Informatics, has just announced that it is now offering programs for usage-based car insurance that will allow drivers to use mobile technology and telematics in order to prove their safe driving habits so that they can lower their premiums based on actual performance.

A growing number of auto insurers have been adding telematics and usage-based insurance (UBI) to their programs. According to DriveFactor, this type of system could save a policyholder up to half off their premiums.

The DriveFactor programs have been created to allow insurance companies to be able to quickly implement policyholder UBI discounts in a cost-effective way, as they receive additional analytical support for risk assessment and rating accuracy. Furthermore, the company gives consumers the chance to create their own unique DriveFactor Score, which is a reflection of an individual driver’s habits while behind the wheel, and use of safety behaviors.

Drivers who have the best scores are able to receive significant reductions on the premiums that they pay for their auto coverage.

According to the CEO of DriveFactor, Steve McKay, “With DriveFactor, we’re giving the auto insurance market more flexibility to expand usage-based insurance, reduce adverse selection, and reward safer drivers.” He also went on to explain that “This is a mutually beneficial solution for insurers and policyholders, who are seeking cost-effectiveness and cost savings, respectively.”

McKay said that when compared to other factors, UBI is a technique that is “simply too powerful” to be able to justifiably ignore it. The DriveFactor UBI programs assist insurance companies in their ability to rapidly gain an advantage over the competition, while making it very simple for drivers with strong safety habits to save on their policies.

Many American insurance companies, such as Allstate, Progressive, and StateFarm, have already announced their intentions to begin the use, or to expand the use of their own UBI programs, as the response from consumers has been exceptionally positive. Other insurers outside of the United States, as well as those abroad, are also now beginning the rapid adoption of usage-based car insurance techniques and technology that uses onboard diagnostic devices for driver behavior information gathering.

Related posts

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.