Take the Guesswork Out of Auto Insurance the Digital Way

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The Insurance Information Institute (III) reports that a new high-tech gizmo can help policyholders in and around the United States calculate auto insurance discounts for traffic safety and low mileage almost instantly.

Dubbed as "usage-based" or "pay-as-you-drive" telematic programs, these devices can help insurance consumers 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 receive a lower rate," the insurance institute recently made clear in its website.

Insurance companies have long used policyholders’ reported mileage and driving records to help set policy rates but sometimes come up with figures that way off their actual driving behavior and budget. Telematics are taking estimates out of the equation and delivering data straight from driver to insurer.

As of now, there are already more than 10 carriers based in the U.S. that are offering this new technology to their customers. Earlier this month, State Farm introduced its new In-Drive service, which uses a device inserted into a vehicle’s diagnostic plug to monitor speed, acceleration, braking and other data. The system also allows policyholders to access the company’s Drive Safe & Save plan, which rewards motorists for logging low mileage.

Apart from State Farm's In-Drive, motorists in and around the country can also zoom in on Allstate’s Drive Wise as well as Progressive’s Snapshot. III claims that taking the guesswork out of the process can easily help insurance consumers save 20 percent or more on premiums, in addition to helping improve driver safety and reduce the possibility of traffic mishaps.

Telematic services provide "a more immediate feedback to the individual driver about the riskiness of his or her behavior and therefore may be more successful in changing bad habits," the institute reports. With nearly 135 million cars traveling on our country's streets, roads and interstates daily, vehicular accidents have become a common sight. "Perhaps adding a more modern solution could be welcome news for all drivers," III adds.

Still having a tough time taking road safety and protection to a whole new higher level without emptying your bank account? No need to look anywhere else. Make sure you give our pages a quick browse right now to find out more about telematics and how it can shave a few dollars off on your next premium payment.

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