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It’s called usage based insurance (UBI) or Telematic Rating and it can save you money on your monthly car insurance premium.
UBI is an optional program offered more and more by insurance carriers such as Safeco’s RightTrack Program. Insurance carriers give the person enrolled a small device to plug into their vehicle. The device then monitors your driving habits from hard braking to rapid acceleration habits.
After having the device installed in your car for a certain amount of time, usually 3 months, the insurance carrier will give you a discount based on your driving habits. If you are considered a good driver, they will discount your insurance premium for the life of that policy. We have seen insurance premiums get discounted by 24%!
Do we recommend it?
Yes! To date, there is no risk of increased insurance premiums. Even if some unexpected events happen while you drive the car, such a few hard breaking incidents, it will not increase your premium.
Which insurance carriers use Usage Based Insurance?
For now, if you have an auto insurance policy with Safeco or Progressive contact us if you are interested in enrolling in a UBI program to save up to a potential 30% on your insurance premium. Other carriers will follow in the future with these programs. We will be updating with changes as they come!