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Are you switching to use-based car insurance?

Posted on: November 19, 2020 By: Abbate Insurance Associates Inc.

During these strange times, you may use your car much less. You may work from home, spend less time together and cook more often at home. If so, you may be wondering if you can save money on your car insurance in New Haven, CT now that you're less behind the wheel. This is where usage-based car insurance comes into play. This type of policy bases telematics pricing on your device and can help you save a lot of money – as long as you are the right driver for the program.

What is use-based car insurance?

Generally speaking, regular car insurance premiums are estimates from insurance companies on how to use your car, as well as additional factors. However, this can often lead to people paying premiums that are far from their estimates. The use-based car insurance works by basing the premium on how often the car is used ̵

1; with mileage as the deciding factor. Basically, this insurance is calculated based on the actual use of your car, and this can be a more structured and logical way to do it.

Is use-based car insurance right for you?

Use-based car insurance is becoming more and more popular as there seem to be many benefits for people. It is a much more modern form of insurance and includes modern technology that enables insurers to track their policyholders more closely. Companies can use a device connected to the car or even an app in the phone to try to figure out how much insurance you should pay. The information collected will be used to train and determine your invoice. This will measure your mileage as well as how fast you drive, how hard you brake, where you drive and times of the day you drive.

Although there are many benefits to this coverage, drivers who choose this coverage must be aware of the potential disadvantages. Because of the way insurers collect your information and come up with a premium specifically for you, it means that the less you drive and the safer you are, the better it will be for your wallet. It also means that the opposite is true – the more you use the car or the more ruthless you are, the more your premium increases. Sometimes you can not avoid using the vehicle or get into an accident. If you stay within the safe intervals set by the insurance company, you may be able to qualify for lower prices.

For example, if you drive less than 10,000 km per year, never exceed 80 km / h, rarely drive at night and brake with a lot of time to save, you will pay less in premiums than a driver with high miles and a leading foot. Whether a use-based car insurance is right for you depends on the type of driver you are.

All car policyholders are looking for ways to reduce the cost of their insurance without sacrificing coverage. Fortunately, you do not have to reduce your coverage to just the basics. There are many ways to save money and it is the first step to decide if usage-based car insurance is right for you. You can also discuss discounts and deductibles with your insurance agent if you are interested in lowering your premium without giving up any coverage.

When the unexpected happens, car insurance can come in to help. Take the time to review your car insurance to ensure you have optimal coverage for your needs. Contact Abbate Insurance to get started with your customized insurance.

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