New insurance program could net drivers savings on premiums
A new auto insurance program in Alberta, Canada, could give drivers a chance to save money on their coverage. Allstate has launched a new usage-based insurance policy in the province. The policy involves the use of telematic technology, which is designed to collect data on how a vehicle is being driven. This may be good news for safe drivers, as they will be able to obtain discounts on their insurance coverage. This data is collected over six months, giving Allstate the time and information it needs to provide discounts to customers based on their driving habits.
Demand for usage-based insurance coverage is growing quickly
Allstate is the first company in Alberta to provide access to usage-based auto insurance, but it is not the first insurer to offer such policies. In the United States, such policies are becoming more popular as they have managed to save consumers significant money on premiums. Demand for usage-based insurance has been growing throughout Canada, and Allstate is seeing new opportunities emerge and is moving to satisfy this demand in order to better serve drivers.
Allstate will gather information over a six month period
The information that the insurer will be collecting includes the frequency of hard braking, the time of day policyholders drive, and the total distance they drive on a daily basis. This information comes from the diagnostic system of a vehicle and is then sent electronically to Allstate for analysis. After six months, the telematic technology used to gather this data will be recovered by Allstate and discounts will be applied to policies accordingly.
Drivers are unlikely to revert to bad driving habits after the six month period has past
Allstate believes that its new auto insurance program will encourage drivers to be safer. The company believes that it is unlikely for consumers to adopt safe driving habits and then revert to bad habits after the six month period. As such, the program may be a powerful tool in helping make driving in Alberta safer for everyone and could result in fewer car accidents, which may help lower premiums for all drivers.