Things To Know About Usage-Based Insurance (UBI)

​Car insurance provides financial protection. The insurance company agrees to pay the losses covered in the policy in exchange for paying premiums. When a car owner is looking for car insurance that reflects his or her safe driving, usage-based insurance is perfect. Hence, here are things to know and discover about usage-based insurance.

1. The types of usage-based insurance
   There are two types of usage-based insurance. The first one is pay per mile, where rates are based on the miles driven during the period. The second and last type is based on behavior, where rates are based on how safe the owner drives. 
   
   
2. The basis of measurement of usage-based insurance
   Usage-based insurance usually measures the telematics of the car in a certain period. Examples of such are acceleration, harsh braking, and speed of the vehicle. In addition to that, it also measures the vehicle’s mileage and the car owner’s usage of the phone while driving. 
   
   The technology used for collecting the data as mentioned above is based on the insurance company. It could be an application, a built-in system of the car, or a device plugged in the car. With these, the car owner gets a driving score and tips on improving the score. Hence, the better the score, the better the rates of car insurance.
   
   
3. The benefit of participating in the program
   Insurance companies could offer an automatic discount of at least 10% on the policy or every renewal. There could also be a cashback every six months for safe driving. Moreover, there could also be monthly rewards such as money. Thus, this program could save the car owner from paying high premiums and or enjoy perks.

Conclusion
The insurance company determines the risk of insuring someone by their age, driving records, and type of vehicle. The highlight of this is that usage-based insurance determines the rates based on the owner’s driving skills. Hence, it is a good option to minimize car insurance rates as there are discounts offered. Purchasing usage-based insurance could help the car owner save money since he or she drives safely. 

At Best Insurance Group, LLC, we do our best to ensure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (970) 674-5000 or Click Here Here to request a free quote.