If you’re looking to buy auto insurance in Palatka, or other area around the country, there are many options for you to consider. One such option, known as usage-based insurance, may save you money on your premiums. Before you make the switch, keep these things in mind:
What is it?
Usage-based insurance is a fairly new concept, made possible by modern technology. It’s being adopted by more and more companies as a way to reward customers for good driving habits. Through a device that’s attached to your car, the insurance company can track your driving habits to determine whether you’re eligible for a driving discount. It tracks things like:
- Your speed and rate of acceleration
- Your braking patterns (hard braking for lights, etc.)
- The time of day you drive (late night driving could be considered higher risk)
- The total number of miles you drive per week
Based on the data gathered during a specific period of time (six months usually) your insurance premium is adjusted to reflect your driving habits. So, if you normally drive late at night (say, after midnight), have a long commute to work, or speed on a regular basis, this may not be for you.
This has proven to be a handy tool for monitoring new drivers, especially young males who many say get an unfair rate right out of the gate from insurance companies. The device allows young people to prove themselves, instead of companies relying on impersonal statistics to set a premium.
When you’re shopping for auto insurance in Palatka, or other area, ask your broker or insurance rep about usage-based devices to help lower your rate. One of the advantages of having one in your car is making you more aware of your driving habits, such as your speed and braking style. This can not only reduce your payments, but also make you a safer and more aware driver.
