The Benefits of Usage-based Auto Insurance: Pay As You Drive

In the world of auto insurance, it’s important to keep up with current trends and market patterns, as doing so can help you maintain appropriate coverage at an ideal rate. One rising trend in the auto insurance market is usage-based coverage. At Cashway Auto Insurance, we’re ready to help you understand this new and potentially cost-saving coverage option.

What Is Usage-based Insurance?

Usage-based insurance (UBI) is a type of auto insurance policy that entails monitoring your driving habits as a primary factor in determining premiums. Specifically, carriers may track your speed, acceleration and braking distance when you drive. This can contrast with traditional quoting processes, which often weigh personal details, such as your age, location and driving record as primary criteria.

In recent years, auto insurance premiums have risen for many motorists, even if they haven’t made claims or adjusted their coverage. Fortunately, UBI may offer a means of savings amid these market conditions.

How Can UBI Benefit Me?

Choosing a usage-based auto policy can garner many advantages, including the following:

• Lower premiums—This type of auto insurance arrangement can often lead to both short- and long-term savings, as data indicating your safety as a driver could lower your rates.

• Improved driving—Knowing that you’re being monitored as you drive could encourage you to practice safe habits and avoid the temptation to make aggressive maneuvers.

• Analytical assistance—Usage-based programs use telematics data from cellular and GPS technology to monitor your driving, potentially helping you recognize flaws in your driving, such as taking turns too quickly or accelerating suddenly.

• Streamlined investigations—If you’re involved in an accident, data gathered from UBI, such as the speed and direction of involved vehicles, may help paint a picture of the situation and assist the claims process.

Learn More about UBI

Contact Cashway Auto Insurance in Casa Grande, Arizona, today to discuss UBI coverage options or compare personalized quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.