Cheap Usage Based Car Insurance
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In recent years a new type of auto insurance has gained popularity based on the amount of mileage a person drives, along with their driving behavior. This is known as usage based coverage. Although it is not an entirely new option, it has become more popular as people have cut down on driving, especially in urban areas. Insurers have always used the amount of miles driven to factor policy rates, but some new companies have big discounts available if you drive under a set amount each month. Lets take a look at how to get cheap usage based car insurance and then you can decide if is right for you. Get your free quote on-line from good to go auto insurance right away.
Usage Based Coverage Explained
In simple terms, usage based automobile ins is determined by how often you use your vehicle. If your car is only driven on the weekends or in summer, then your rates will reflect this low use. Some people, especially those with a high net worth, have several cars in storage that are rarely used. Getting a policy that offers discounts for low use driving is important in this case.
If someone lives in a high crime neighborhood and drives more than 1,000 miles monthly, then their rates would be of course much higher. Usage based vehicle insurance is cheaper because the automobile insured is not exposed as much to traffic conditions and thus, in theory, will get into far fewer accidents. Insurance pricing, after all, is based on the risk each person projects. The area one lives in and the amount of miles the car is used are 2 huge rate factors.
In recent years, companies like Progressive insurance have introduced data technology that plugs right into a persons vehicle. Using telematics, companies can get an accurate reading of someone’s driving behavior, where they travel to and how many miles they are putting on the odometer. This has taken the guess work out of determining risk.
If you’re a hard driver that takes off fast, brakes super hard and takes corners at the limit, then you are considered high-risk. On-board applications can analyze how you drive and whether or not you are a safe, low risk motorist. Some devices even allow audible alerts to motorists that drive incorrectly or too fast. Insurance companies will review your driving data periodically and adjust your rates up or down depending on how much risk you pose. There are also a lot of factors that insurers use to calculate pricing like the time of day you use the vehicle most, and the cities the car is driven in. One of the biggest factors, though, will always be the number of miles driven each month.
Promoting new options
Before this new smart telematics based technology was introduced, many people would not exactly tell the truth about where they lived or the actual mileage they drove. Insurers are actively promoting this new option, but many people find it an invasion of their privacy and “big brother” watching their every move. If you don’t mind having your activity behind the wheel analyzed, and you don’t use your car much, then you should seriously consider checking it out.
Rates Based on Mileage
Some insurance carriers now offer coverage that is based on the miles driven. The more you drive, the higher your rates will go up and conversely the less you are on the road, the cheaper your premiums will be. The price an individual pays depends on numerous factors like a persons age, driving record, car model and so on. If you rarely drive your automobile, less than 10,000 annual miles, then you should definitely look into this type of specialty coverage. It is possible to save hundreds per year, so it is worth your time to in the least get a free quote. Get cheap usage based auto insurance with good 2 go today.
To get cheap usage based car insurance, make sure you cut down on your monthly mileage and drive carefully. The data just does not lie. If you follow these 2 tips you can really lower your premiums quite a bit. Get a free usage-based quote from good to go insurance today. Compare plans and rates from all the leading providers. Get started now and get a better car insurance deal online.