As insurance premiums continue to escalate in Niles, OH, numerous drivers are exploring alternative auto insurance options. One such emerging policy is usage-based auto insurance, which tailors coverage to your specific driving habits.
Understanding Usage-Based Auto Insurance
While traditional auto insurance calculates premium rates based on past driving history, usage-based insurance (UBI) focuses on current driving behavior. Over a specified period, UBI tracks driving habits to determine a premium rate. This type of insurance is particularly beneficial for casual drivers, those who take defensive driving classes, and drivers keen on improving their driving habits. On the other hand, reckless drivers, night-time drivers, and those uncomfortable with insurance companies monitoring their driving may prefer traditional auto insurance.
Eligible drivers can opt for one of two methods to measure UBI driving performance: pay-per-mile or pay-as-you-drive. Pay-per-mile tracks the number of miles driven within a given timeframe, while pay-as-you-drive monitors your driving skills over a set duration. The pay-as-you-drive model collects data such as:
- Day and time of driving
- Speed
- Acceleration
- Braking
- Cornering
- Idle time in heavy traffic
- Driving behavior during commutes
- Phone usage while driving
How Does Usage-Based Auto Insurance Monitor Me?
Ruddy Insurance Group provides two tracking options: a plug-in tracker for your car or a mobile app available for download on their website. If you opt for the mobile app, remember to grant access to your location.
The pay-as-you-drive model collects data and compares it to past driving habits to determine premiums. Other metrics may be used, but this varies by carrier. For the pay-per-mile model, you select a mileage limit, and the number of miles logged determines the premium rate. The duration of data collection (one month, several months, the entire policy duration, etc.) depends on the carrier.
The team at Ruddy Insurance Group will review your auto insurance policy and driving habits to assess your eligibility for UBI. If you qualify, we will explore our partner carriers to find a company whose usage-based auto insurance best suits your needs. We’ll then discuss it with you and answer any questions you may have. For more information on usage-based auto insurance and other insurance offerings, visit our office in Niles, OH, or call us at 330-652-0202.
