Auto Insurance Rating in the United States is rapidly changing with the use of Telematics. Telematics (or a telematics system) is a method used to collect information about your mileage and driving habits. Telematics may also come into play if your insurer offers mileage-based insurance policies (sometimes called "pay-per-mile insurance").(From Google Search)

 

Many drivers are now paying more for insurance if they opt out of the insurers Telematics options. Options are using a USB Device that is inserted into your vehicles data port, or an App that goes on your Smart Phone. Discounts for using the Telematics Range from 3% to 50%, depending on the Insurance Company and the data they receive from you. The devices usually measure your speeds, the time of day and night that you drive, in some cases your mileage, and your braking habits. Most companies allow you to see the data from logging in to their Website. Some new Auto Only Insurance Companies will not give you a rate until you use their app for at least 30 days. This also means that when paying monthly your rate can change every month, depending on the data received. If you are in a usage based program and you go over your estimated miles, you could also have a payment due at the end of your term that you were not expecting, or prepared for. Be careful when signing up for your insurance companies telematics, and make sure you understand what data they are receiving and how they use your data. If you do understand how it works, and you are looking to reduce your insurance costs, this can be a way to do it. My agency offers rates with, and without Telematics. Please call or email me if I can answer any questions for you.

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Brian Dee Counterman, LUTCF - countermaninsurance.com