Vehicle insurance industry is changing a lot faster than many people may realize. Motorists may think that they need great driving records to get the lowest rates. However, there are a few other factors that affect your premium and ways to lower them. And those factors can be more influential than being a great driver with no accidents and traffic tickets. This article looks at what is in store for drivers and how they can help in reducing risks on the road and premiums.
Vehicle 2 Vehicle Technology
One of the most notable researches in vehicle safety is the Vehicle 2 Vehicle communications. This project has been in the works for over a decade now and we may start to see it in use around 2020. Cars will communicate with each other and warn drivers of dangers ahead with this technology. We may need to wait a little longer to fully benefit from these researches as it will take time to implement it to most of the cars on the roads.
In the meantime, there are several great and free solutions that work around the same idea. Apps like Waze can warn drivers of dangers ahead and help in many other ways. It is free to download. According to their website, over 50 million people downloaded it already. These apps rely on other drivers and human reports (in the meantime) to warn other drivers. The idea is that divers who see an accident or sitting on a congested road warn others to stay away from the area. After getting the alert you can use the app to find another route for your journey.
These improvements will reduce your car insurance rates indirectly. You will have fewer accidents thanks to safety features in your automobile and external helps from apps and other sources.
Next step in the advancement of vehicle 2 vehicle and vehicle 2 road technologies is the driverless cars. They are being tested as we speak but it may take a few years for them to hit the roads. And it may take a few years more for them to be economical enough for most people to afford. Wouldn’t it be great to seat at the back and enjoy the view or carry on with your business while you are being driven to your destination, just like a millionaire, top CEO or a general?
Implications of driverless cars on auto insurance industry will be huge. The way the risks are viewed and assessed will have to be reworked. First of all, the industry will have to move away from driving history based premium calculations to vehicle based calculations.
Car 2 Insurance Company
While these developments are brewing several auto insurers have their own solutions to cater for their information needs. Carriers can learn a lot more about your driving by installing a small device on your vehicle called telematics (or black box in other countries). Then, they can calculate your premium based on your driving patterns recorded by this device.
Pay As You Go policies are one of the most innovative and effective solutions today in the insurance market. You can see immediate rate reductions just for installing such equipment. You can get further savings after the insurer has enough information about your driving if you drive carefully. Just knowing that your driving is being monitored is enough to drive more carefully, according to 1/3 of motorists who used these devices and surveyed. You can learn how you can get cheaper automobile insurance with Pay As You Drive auto insurance.
If you are looking to reduce your premiums there are a few ways of achieving it. The old way of thinking that you have to be a great driver to get the best rates must change. There are new metrics and methods in place today. For example, by improving your credit score a little you can get up to 20% discounts with a few companies. Take your time to find out what is new and who is offering the best rates in the market when your renewal is up.