Several factors contribute to many people who are now considering usage-based car insurance:
- Soaring gas prices have some people choosing, or being forced to drive less often.
- Extreme weather-related events resulting in costly claims are increasing insurance premiums.
- The technology in vehicles makes insurance claims more expensive, resulting in rising insurance premiums.
- Many people are continuing to drive less often due to the pandemic.
Insured drivers are better understanding the importance of safe driving practices and how doing so can help keep their insurance premiums low.
Considering the above factors now may be a good time to consider usage-based car insurance.
How usage-based car insurance works:
Those opting for usage-based insurance (also known as UBI, or Telematics) have an app installed and active on their smartphone which monitors and reports on three main factors:
- The distance driven
- Time of day driven
- How often and with what force the driver accelerates and brakes
These three factors help more accurately match the driver’s level of risk, discounting “good” driving behaviour, which can amount to about 30% of the total insurance premium.
Furthermore, UBI has two other advantages:
- The app can be accessed for information if the driver is involved in an accident.
- It’s a scientific fact that drivers who know their driving are monitored, they naturally drive safer.
Some people may be leery about having their driving monitored, but it’s important to note that the information collected is subject to strict privacy policies and cannot be used for any other purpose without express consent. If you’re involved in an auto accident, the information from the app can help determine fault.
If you would like more information about UBI or to receive a quote, gather your insurance documents and reach out to us: 1-800-679-2640 or email:
info@easyinsure.ca.