What Is Usage-Based Insurance And What Are Its Advantages

LOS ANGELES, Aug. 23, 2019 /PRNewswire-PRWeb/ -- Compare-autoinsurance.org has launched a new blog post that explains how drivers can obtain cheaper car insurance with the help of usage-based insurance programs.

For more info and free online quotes, please visit: https://compare-autoinsurance.org/top-advantages-of-usage-based-insurance/

In the past years, usage-based insurance programs have become more and more popular among drivers that want to obtain large discounts in a fast manner. Also, an increasing number of insurance companies are offering these types of programs. Usually, a small telematics device is installed inside the policyholder's vehicle. This device will record data about driving habits and send them back to the insurer.

The benefits of usage-based insurance are the following:

• The discounts for good drivers are obtained really fast. Typically, insurance companies need to analyze years of driving history before granting a discount. However, with the help of usage-based programs, drivers can gain a discount after several months of monitored driving.
• Drivers can immediately obtain the low-mileage discount. The telematics device is constantly monitoring the driving habits of a driver, and if he drives fewer miles than a certain limit, he will be rewarded with a low-mileage discount.
• It encourages drivers to adopt safer driving habits. Knowing that they are closely monitored by their insurers and every bad driving habit they have can lead to a premium increase, will determine drivers to have better driving habits.
• It helps authorities to investigate accidents. Data like speed and the direction the car was traveling, airbag deployment and hard braking are recorded moments before an accident happens. These data can help investigators to find out what happened.
• It helps the authorities to track a stolen vehicle. All telematics devices come installed with tracking technologies that can help authorities to recover a stolen vehicle.
• Cheaper insurance for teen drivers. Enrolling in a usage-based insurance program is one of the few methods that can help teen drivers pay less on their car insurance.

For additional info, money-saving tips and free car insurance quotes, visit https://compare-autoinsurance.org/

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SOURCE Compare-autoinsurance.org