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What to Look for When Shopping for User-Based Auto Insurance

9 March 2017 Category: Article Archives, Auto Insurance

What to Look for When Shopping for User-Based Auto Insurance

For many years, auto insurance in Glendale would clump customers into set and rigid categories in order to determine their risk, but all of that is about to change. 

Auto insurance companies use statistics in order to determine your risk factor and your premium. Companies used to be less personal about the process, usually clumping customers into set and rigid categories–no matter how much difference there was in their risk. Now, nine out of the ten top U.S. auto insurance companies started selling policies based on how motorists drive. This can be helpful in saving you money over what traditional policy holders pay. The reason it is cheaper is because the policy is smithed towards your personal driving habits and a fairer price can be forged. Whereas the traditional way would clump you with drivers of your skill, more or less. Use-based insurance removes the “more or less” aspect pricing. If use-based auto insurance in Glendale appeals to you, here are a few things you should look for when shopping for user-based auto insurance.

Understand the collected data – Insurance companies will still use statistics to determine premiums, but the data they collect will be different. Each state has different levels of restrictions on what data auto insurance companies can collect. Then, before you sign on the dotted line, make sure to read the fine print of your policy.

Find out what’s available – Not every insurance company offers use-based auto insurance, so it is best to scan the website of insurance companies to understand what they offer. You can always visit auto insurer’s websites and type in your zip code to see if they offer use-based insurance in your area.

How do the insurers determine discounts? – Everyone likes a good discount. There are some insurers out there who may start you off with a five to ten percent discount and adjust your rates after collecting some data that regards your mileage and driving behavior.

Use-based insurance bundle – There are some insurers who offer use-based insurance as a bundle service that is tied to the car’s entertainment, safety, or maintenance systems. For example, they could offer mileage-based, stolen vehicle assistance, and hands-free mobile phone service all within the policy. The rates can change after renewal based on the behavior and the driver’s choices.

If you have any questions regarding auto insurance in Glendale, CA, contact Massive Insurance. Our dedicated team can get you the best coverage at the best price.