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Hands on Steering WheelImagine paying for car insurance not based on the driving habits of your demographic, but rather on the way you actually drive as an individual. This is the essence of usage-based insurance — in which a telematic device is installed in your car and tracks your driving behavior. The device records and transmits the information to your insurance provider. This includes your car's speed, acceleration, braking, cornering, daily mileage and time of day.

This information gives a good assessment of your driving habits because the patterns of safe drivers are distinctly different from those of unsafe drivers. The best motorists stay within speed limits and don't accelerate, brake or corner as hard as high risk motorists. If the high risk driver adopts safer driving habits, his or her premiums may reflect this behavior. More benefits of usage-based car insurance are discussed below.

Lowers Premiums For High Risk Groups

If you're a young man who drives safely, your premiums may be lower than those of your peers if you have telematics installed in your car. People in your demographic who drive aggressively won't be subsidized by safer drivers such as you. This can result in a fairer way of calculating premiums.

Improves Your Driving

Insurers also give their usage-based customers access to the information provided by their telematic devices. If your last insurance bill seemed high, you can immediately identify and correct the driving behaviors responsible. Many drivers are used to their "style" of driving and often can't tell if they're accelerating, braking or cornering too aggressively. Telematic data gives them objective feedback.

Rewards Low Risk Motorists

Low risk motorists are people who drive safely, rarely drive at all and/or almost never drive at night. While you're not expected to find a job with a shorter commute or to stop night driving, there are many low risk motorists out there with premiums that don't reflect this. If you are one of them, you may benefit from usage-based insurance.

Saves On Gas And Maintenance

Frequent aggressive driving burns more gas and subjects the car to greater wear and tear. On the other hand, low risk driving means that brakes, tires and other parts of your car may last longer. Lower gas consumption helps your wallet or pocketbook, as well as the environment.

If lower gas and maintenance expenses, longer vehicle life, improved driving skills and lower premiums for safe driving appeal to you, contact your independent insurance agent to learn more about usage-based car insurance.

Is your coverage benefiting you? Call Lancette Agency at (651) 264-1230 for more information on Minneapolis auto insurance.
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