How Does Pay-as-you-go Car Insurance Work?
Usage based insurance is also known as pay-as-you-go car insurance that uses telematics to collect data on driving behaviour. This insurance plan is designed to help you save by keeping more money in your pocket. The insurance company adjusts the coverage price and good driving habits can earn drivers up to 25 per cent in discounts. Don’t pay for others’ poor driving habits and become a statistic. Instead, you get to pay for how you drive on the road. Insurance Hero will sit down with you and work out the best usage based insurance coverage for your needs. Call 1-855-777-4376 for convenient access to an insurance advisor. A easy to install wireless device is placed below your dashboard and tracks driving behaviours to get an idea of drivers’ patterns. This data is then transmitted to your insurance agent for a better understanding of how drivers can save on their premium each year. This type of insurance coverage measures three pieces of data: distance driven, breaking and acceleration patterns, as well as the time of day you drive. Speed is never monitored and is not a factor when calculating your coverage cost. This is significantly different than how the standard Ontario car insurance plan is determined. However, the cost of usage based insurance will still be affected by any traffic tickets or accidents recorded in your driving history. If you have new or young drivers, pay-as-you go car insurance can influence safer driving by continuously receiving updated driving patterns. Drivers can learn from the data and modify their behaviour. This plan gives you flexibility because the telemetric technology only factors in drivers of your car, instead of linking you to provincial statistics that would normally affect rates with other types of auto insurance. However, keep in mind that the price of usage based insurance can change at each renewal period since it’s based on three variable factors.