Tag: pay as you drive insurance

Usage based insurance is now being seen without rose colored glasses

Marc
Usage Based Insurance

Now that it has had its first wave as a novelty, drivers are starting to look at its other side. Drivers across the country are already taking part in the usage based insurance programs being offered by a number of the larger insurers, with the promise of an opportunity for significant savings. However, on closer inspection, some are starting to wonder whether the tradeoff is worth it. Insurers have crated usage based insurance programs that allow motorists to have their driving behaviors tracked by the companies in order to gain…

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Usage based insurance encourages safe driving among young motorists

Julie Campbell
Car insurance for young drivers

IMS has now launched its Young Drivers Intelligence program for road safety among teens. Intelligent Mechatronic Systems (IMS) has announced the release of its first Young Drivers Intelligence (YDI) program that is working alongside one of the largest auto carriers in the United States for usage based insurance. The goal is to help to encourage new drivers to make safer driving choices. The program applies usage based insurance technology, where the driver behaviors are monitored through a wireless device that transmits data back to the insurer. This monitoring rewards drivers…

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Usage based insurance could change the entire underwriting model

Julie Campbell
usage based insurance

A growing number of auto insurers are offering telematics programs. As the popularity of usage based insurance grows among both auto insurers and consumers, the data that is provided through the telematics devices is helping to provide more accurate information regarding the risks associated with a certain driver, so that pricing can better reflect that actual risk. This approach is already in place in many parts of the United States, Canada, Europe, and Australia. At the moment, the most common usage based insurance programs in North America are in truck…

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Usage based insurance faces a road block in California

Julie Campbell
California Auto Insurance

Tracking technology has privacy advocates raising concerns regarding its intrusive nature. Though California had initially been among the states leading the way for usage based insurance, it has suddenly hit a wall as privacy advocates speak out against what they feel is an excessive intrusion that could lead to significant consequences. The UBI programs are meant to provide insurers with a more accurate reflection of a driver’s behaviors. With the information they collect through usage based insurance, auto insurers have been able to offer lower risk drivers a discount on…

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Usage based insurance is changing pricing models

Auto Insurance

Built-in tracking devices are transforming the way that rates are calculated for drivers. Traditionally, insurers have used a motorist’s age, gender, address, and other demographic information to calculate the premiums an individual would pay for coverage, but usage based insurance is now changing that pricing model to include driving skills and behaviors. These increasingly popular devices and programs are starting to transform the monthly bills. Now, instead of basing rates on risks that are calculated using historical data regarding the group into which an individual driver falls, his or her…

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