Usage based insurance (UBI) is a new insurance program that is meant to reward drivers with lower premiums for having good driving habits. You might ask, “But how will my insurance company know that I regularly practice safe driving behaviours?” The answer is pretty neat. In order to capture and analyze data, a small wireless telematics device is installed within your vehicle that will allow your insurance company to keep track of when, where and how you drive. Read on to learn the details on usage based insurance and see if it’s right for you!
What Does Usage Based Insurance Track?
These telematics tracking devices monitor a number of factors, including (but not limited to):
- rate of acceleration and deceleration
- time and day
- kilometers driven
- speed
While we understand that poor driving habits doesn’t always equate to accidents, it’s important that we reward drivers who are demonstrating safe driving behaviours.
The Benefits
By installing the UBI device, driver’s have greater control over their auto insurance premiums. With discounts up to 30%, it’s an offer many driver’s can’t refuse. Here are a couple other benefits of participating in usage based insurance:
- adoption of safer driving practices
- features can be added to make it easy to locate stolen vehicles
- additional features can be added to alert you when it’s time for car repairs
The best part about participating in a UBI program is that your premiums can only go down. If your driving habits don’t qualify for a discount, your premiums won’t increase as a result, they’ll simply stay the same.
The Worry
As with any new technology, many people are worried about privacy. People don’t like the idea of insurance companies having all of this information, and they are worried what companies will do with it.
If you are concerned about how your information is being used, be sure to ask your insurance company about their privacy agreement. A read through will almost always put your mind at ease knowing that your information will be kept confidential.
Want To Learn More?
While usage based insurance is still relatively new to Canada, it’s peaking a lot of people’s interest. UBI is about rewarding positive behaviour, not punishing bad behaviour. If you would like to learn more about usage based insurance or get a quote in under 4 minutes visit our quote page or call the expert team at ARC Insurance.
