Friday, September 7, 2012

Usage Based Insurance Is A Rewarding Venture For Cautious Drivers And Entrepreneurs

Telematics make usage based insurance possible, thanks to the monitoring of all behaviors and performances of the driver. Many drivers throughout the years have been upset by paying premiums that are based upon fixed variables, such as the color and make of an automobile, the age of the driver, and whereabouts, instead of reflecting mostly upon the skill and proficiency of the driver. Telematics devices generate a sundry of reports, from brake force to driving speeds, ranging to time of day the driver is on the road and distances traveled as well- which can all positively or negatively change rates. Although systems are designed to observe drivers, these devices encourage individuals to become more observant and cautious, in an attempt to receive the best rates possible- a study concluded several years ago that accident rates had dropped twenty percent in younger drivers that utilized telematics equipment.

Conventional methods implemented by insurance companies reward drivers based upon history, which can take years in some situations before rates will reflect better premiums. Many companies establish policies based upon area accident ratios, which understandably affects everyone in the community but still causes many to feel indifferent. These companies now give drivers the opportunity to prove their driving skills merit cheaper rates for the same coverage.

Not only is usage based insurance liable to 'pay as you drive', but how the motorist performs as well. PHYD and PAYD are the methods used to bill policy holders according to not only the amount of time driven each day but other factors, such as behavior and the time of day; drivers who walk, that are not required to drive to work every day, and innocents who are sometimes punished by the habits of other drivers now have a chance to be charged fairly. Many agencies encourage the use of these devices, since better driving habits are encouraged and unnecessary travel is decreased in order to receive better rates.

Telematics devices are implemented in a variety of ways to monitor speed, safe or erratic driving patterns, and other behaviors that increase or decrease the driver's risk. Services are built-in to several models of the most recent cars in the industry; older makes require different alternatives for service, such as plug-ins and mobile accessories, all provided exemplary support and coverage to any year or make of vehicle. When combined with beamed-in technology, devices are capable of advanced intelligence and further driving support.

Human Machine Interface allows the driver to perceive important information, tips, and access to mobile services through voice communication, allowing safer driving through less distraction. Stolen and lost issues are relieved thanks to the integrated global positioning systems, weather updates are announced as well as directional assistance, all to avoid missed turns and damaging elements which can create hazards. Usage based insurance is an exciting and money saving venture for any driver, offering a sundry of incentives and rewards in addition to some of the best rates obtainable.


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