Modern Technology Takes the Guesswork Out of Auto Insurance

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With everything going the digital route these days, calculating auto insurance discounts for traffic safety and low mileage is as easy as installing a high-tech gizmo that effectively monitors your driving habits.

According to the Insurance Information Institute (III), this trend could be welcome news for consumers who want to find out how much they will spend on car insurance without getting too technical in the process. Dubbed as "usage-based" or "pay as you drive" telematic programs, these devices can help policyholders verify that they drive fewer miles as well as track driver behavior at a touch of a button.

"Policyholders who tend to drive at less risky times of the day and whose driving habits reflect an awareness of road safety are sure to receive a lower rate," the widely-known insurance organization recently announced on their website. As of now, there are already 13 carriers based in and around the United States that are offering this new technology to their policyholders, such as State Farm's Drive Safe & Save, Progressive’s Snapshot as well as Allstate’s Drive Wise.

Insurance companies have long used policyholders’ reported mileage and driving records to help set policy rates but sometimes come up with figures that are totally way off an individual driver's financial capabilities and experience on the road. Telematics are taking estimates out of the equation and delivering data straight from driver to insurer.

While there are a handful of variations on the setup of the telematic system, the most common assembly uses a device inserted into a vehicle’s diagnostic plug to monitor speed, acceleration, braking and other data. Some services even offer direct online access to their carrier's database to make the transfer of information even faster.

If you're looking to find out more about telematics and how it can save you a few dollars off your next premium payment, then you've definitely come to the right place. We can help you zoom in on the best one that will perfectly suit your budget as soon as you check out our helpful pages right now. 

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