Today, everyone is searching for a chance to save money. The statement especially applies when trying to secure reliable, yet affordable monthly car insurance. There are basic and obvious ways to potentially save money on rates, ways that many drivers are already familiar with. These different ways include, but are not limited to: being a safe driver i.e. avoiding accidents and traffic violations, a driver’s occupation, and the type of car driven that is being covered.
However, there recently has been a new method made available to possibly save money each month on car insurance: giving up your privacy! Let’s take a look at some interesting facts that go along with this new method.
Understanding the background of this new car insurance method
Car insurance that is based on driving habits is more or less a pay-as-you-go or usage-based type of insurance. Here is how this new process works: the insurance company will send you a device, and in return, the device will begin tracking your driving habits i.e. how fast you are driving, the time of day you are driving, and how many miles you are driving. The information is then sent to your insurance company, and after a full month’s results are put together, the insurance company will then provide you with your statement.
With any situation, there are going to be some positive and negative factors. Positive first: with this new method of payment, you have the potential to save money. It’s believed that the average customer is saving around fourteen percent by taking part in this method. It’s also important to note that the device used to track your driving habits can be turned off, meaning that you can use this particular service as much as you want or don’t want to.
It’s now time, unfortunately, to take a look at some of the negative aspects that go along with this payment method. One question really comes to mind: how much is your privacy worth? As stated before, the theory behind this procedure is basically to see how good or careful of a driver you actually are, so this method is probably best for those who drive meticulously, not too often, and not too far from home. Different data that will be recorded include, but are not limited to: how fast you travel, how often you speed, miles driven, braking, right and left hand turns, and much more.
As of now, this payment plan isn’t available everywhere. It all started out from the US, but is nowadays widely available in the UK and elsewhere in Europe – it’s relatively easy to find out about your options, as there are quite a lot of helpful websites out there that help you compare rates.
When it comes to saving money each month, it is obvious that lowering the cost of your car insurance should come to your mind first. Though there are different methods to doing this, an increasingly popular way seems to be the pay-as-you-go method. However before switching to this type of payment, it might be wise to consider your own driving habits too see if you really stand the chance of saving money!