Usage based insurance program widened by Allstate

Usage based auto insurance
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At the same time, the insurer has launched a smartphone app for use in the United States.

Allstate has just announced that it is broadening the availability of its usage based insurance program in the United States, growing the size of the Drivewise use across the country.

As of Monday, the device for monitoring a driver’s behaviors is available in 16 states.

The auto insurer said that there are sixteen states in which drivers can take part in the usage based insurance program. This would allow motorists who drive safely to be able to save money on their premiums based on their good habits. Six additional states were added to the list in which the program is now available.

Usage based insurance gives low risk drivers the potential to save more money, though some say it’s a tradeoff.

The latest states to have Allstate usUsage based insuranceage based insurance programs available include Utah, Minnesota, Washington, Missouri, Maryland, and Indiana. This Drivewise UBI program includes the use of a small device that is installed into the vehicle’s onboard diagnostics port. This allows the insurer to be able to track a driver’s braking patterns, mileage, speed, the time of day in which the driver is using the vehicle, and other details.

This data is collected by the insurer so that it can be applied to the usage based insurance program and generate a discount, when applicable. In the case of Drivewise, it is calculated using the telematics technology from Allstate, itself.

Beyond expanding the availability of the program a usage based insurance app has also been launched for smartphone users. It is now available at Google Play (for Android smartphone users) and at iTunes (for iPhone users).

Following an online registration with the app, Allstate said that drivers in the usage based insurance program can obtain “near real-time updates with each trip”. There is also a web portal available through which policyholders can view their information. According to the insurer, the average discount that drivers are receiving through the program is 14 percent. They also pointed out that premiums will only be lowered or remain the same based on the data collected through the program. They specifically stated that the data will not cause rates to rise.

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