Telematics or Usage Based Discounts
Telematics is vehicle tracking. Auto insurance carriers now offer Telematics or Usage-Based Car Insurance Discounts.
Insurance rates are based on risk. The lower the risk your auto insurance company believes you present, the lower they will charge you for your car insurance rates.
Under this logic, car insurance companies will often offer reduced premiums for safe driving and or low mileage.
You may have to sign up for a usage-based program that tracks your miles and driving behavior in order to be eligible for this discount.
Essentially, a usage-based program offers the driver a chance to get a customized discount; the better your driving, the bigger your savings.
In some cases, you may even get a discount for just signing up for the program and installing the device.
Could This Program Actually Increase My Rates?
Your insurance premiums should not increase due to participation in a usage-based program; most car insurance companies say that the program is only used to calculate your discount – not to raise your rates. However, until the program has been study long term, we can not say for certain if telematic information will not be used to raise your rate.
Added Benefits for Parents of Teen Drivers
These pay-as-you-drive programs can be especially beneficial if you are the parent of a young driver. Because the monitoring device in the vehicle records the behavior of the driver and gives you access to the data, you can monitor your teen's driving for any risky habits and correct them before an unfortunate accident occurs.
We offer several carriers who offer these discounts: Travelers Insurance, Progressive, Safeco, Allstate, Mercury and many others. Please contact us to see if you could lower your auto insurance rates.
Suzanne Brown Insurance Agency
A Texas Independent Insurance Agency with over 100 insurance carriers