Friday, November 16, 2012

Usage Based Insurance Premiums Provide Instant Rewards For Safe Drivers

By France X. Sanders

Telematics make usage based insurance available, thanks to the monitoring of all behaviors and performances of the motorist. Countless drivers throughout the years have been upset at times with insurance agencies, often pondering how their premiums should mostly reflect their safe driving skills, instead of age, make of car, location, and other outside elements. Telematics services will analyze a sundry of conclusions from one trip, involving brake force, traveled distance, the time of day, speed, and more, which are reviewed and affect rates, whether negatively or positively. Although systems are designed to examine drivers, these devices encourage individuals to become more observant and cautious, in an attempt to receive the best rates possible- a study concluded several years ago that accident rates had dropped twenty percent in younger drivers that utilized telematics equipment.

Conventional methods implemented by insurance companies reward drivers based upon history, which can take years in some situations before rates will reflect better premiums. Many company's build policies according to the reported accident ratios for each location as well, which can and will affect the entire community but some cannot help but feel disheartened. Drivers have the chance now to demonstrate the fact their skills are worth discounted rates for the same great protection.

Two sorts constitute usage based insurance, referred to as pay how you drive and pay as you drive. These two styles, otherwise known as PAYD and PHYD, charge the driver according to usage and behavior, often the time of day and distance traveled as well; for automobile owners who spend more on insurance than gas during the month, or those with a clean record who are still waiting to receive benefits, all have a just chance now to be charged accordingly. Many agencies encourage the use of these devices, since better driving habits are promoted and unnecessary travel is decreased in order to receive better rates.

Such telematics are applied to monitor a variety of issues, such as erratic driving patterns and other behaviors that indicate whether a driver possesses a high or low risk level. Services are built-in to several models of the newest cars in the industry; older makes require other alternatives for service, such as plug-ins and mobile accessories, all provided exemplary support and coverage to any year or make of vehicle. Drivers are presented with superior features and intelligent support systems when these technologies are united with beamed-in systems.

This Human Machine Interface narrates important information to the motorist, such as driving tips and safer access to mobile communications through vocal commands, easing distraction. Stolen and lost issues are relieved thanks to the integrated global positioning systems, weather updates are announced as well as directional assistance, all to avoid missed turns and damaging elements which can create perils. Some of the best rates in history are acquired with usage based insurance, offering not only cheaper policies but excellent incentives and beneficial features.

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