With the advent of smartphones, smart apps and advanced technology, car insurance is not lagging far behind. We might soon come across something called UBI which is Usage Based Insurance policy through which your driving record will be recorded and stored for commercial usage as this record will be used to determine your premiums. This is nothing short of a futuristic wonder because the insurance company will be able to track your mileage and your movement too. This may sound very technical but it has a simple mechanism: your phone or a car device will have a special chip inside it which will keep your app connected to the car and thus will earn you better insurance rate and premium offers from your car insurance company.
This idea of UBI was actually initialized in 2000, firstly, in the regional market only which aimed at getting your car live with the insurance company and your app, to earn you a better policy after monitoring your speed and driving patterns, as it collected the basic information of what, where, when and how much you have driven your car. Soon this will not only limit to regional market but will spread in the entire region of North America followed by the rest of the world. You will be able to keep your driving and its pattern in proper check through this UBI app on your phones and thus can avail incredible insurance policies and discounts.
The New Mode of Calculating The Insurance Cost
It has been a while since people are purchasing car insurances based on the mileage the car has covered. But with this new technology and app, people can opt for better policies and options in the car insurance as the mode of calculating the insurance cost has changed and now you can measure not only the mileage but the way you drive and the amount of driving you do in your regular routine. According to a research analysis by Frost & Sullivan, till 2020 this new model of car insurance on the basis of usage of the car will escalate up to 100 million drivers.
- These insurance related apps are also available on trial basis with an added advantage of scoring more points on the sharing of the app with friends over social media.
- Customized insurance premiums as per your usage and authentic data.
- Increased number of users will change the market trend to usage based car insurance which will ultimately benefit everyone.
- The sensors installed in your car will help you to stay connected and your app will be able to collect authenticated data only.
- Real time monitoring will be available.
- Crash/ accidents will be automatically registered and this will help the car owners in the claim.
- Quoting the insurance costs as per usage will become easier.
- Popularity will attract more users and new users will be accommodated with newer and more useful policies.
So, in the coming years, expect to see better usage based insurance policies which will keep your car connected with a plug in device and an app.