Do you sometimes feel like you’re paying too much for your auto insurance? If you don’t drive very often, you very well may be investing more in your premiums than necessary. Drivers in the Selden, NY area have the option to switch from traditional policies to a usage-based coverage system. What is usage-based auto insurance and how can a policy from XL Brokerage Inc. keep you covered?
What is Usage-Based Auto Insurance?
Also known as Pay As You Drive coverage, usage-based auto insurance takes into account the number of miles you drive when determining your premium options. Insurers look at these pieces of information when deciding the risk on your usage-based contract.
- The type of vehicle you drive.
- How much time you spend driving.
- How far you typically drive on each trip.
- The average time each trip lasts.
- Where you normally operate your vehicle.
- Driving behaviors such as braking patterns, how long it takes for you to stop, average speed, etc.
There are 3 main ways your auto insurer can use to determine your final rates.
- Tracking the odometer allows agents to calculate your usage, which is used to determine premiums.
- GPS data from an installed tracker, cellphone, or specialized RF technology device reports miles and timing to the insurance agency.
- Additional tracking information from the vehicle such as speed, time of day and place in which vehicle is used, and driver behaviors are compared against the historic riskiness of the roads you take to determine overall risk.
In order to take advantage of this potentially cost-saving option, drivers usually need to agree to have a device installed in their vehicle.
Usage-Based Auto Insurance for Your New York Lifestyle
If you don’t drive often or have a low daily mileage range, a usage-based auto insurance policy may be perfect for you. Contact XL Brokerage Inc. to find out if this coverage is right for your Selden, NY automobile.