Usage Based Insurance Precisely Measures Driver Abilities
Good driver policies are quickly being replaced with usage based insurance that allows companies to see policyholders' driving patterns by assessing on a consistent basis how they perform on the road. This full driver picture gives underwriters accurate information on risk levels so that the number of claims to an insurance company is lessened.
What is termed telematics, is more than a snapshot of a driver's skills but a continuous relay of data on a number of situations such as hard braking, obeying speed zones, rapid acceleration and distances travelled. The standard measure for good drivers was reviewing their claims record, but now it's possible to see how policyholders perform on a daily basis in their vehicles. Telematics dispenses with any generalization of drivers, and a policy now becomes tailored to policyholders.
Telematics can now offer its policyholders the next tier of benefits with usage based insurance that can scrutinize driver behavioral patterns and provide an individualized, tailored insurance plan. Some policyholders have felt they were wrongly assessed for good driver policies based solely on their claims record, but this technological advance will even the playing field so that both insurance companies and their clients can have a stronger relationship. The scope of auto insurance telematics is wide as it also provides meaningful data in a variety of applications such as young drivers who can measure improvement in their driving skills, fleet operators to have full awareness of the location of their vehicles and their use, and rental companies for an accurate user history of their inventory.
Data gathering through telematics for the purpose of usage based insurance is provided by a secure integrated wireless network that is comparative to what banking institutions use, firmware is upgraded remotely and IT support and multilingual customer service is always available. Installing a telematics device in a vehicle is uncomplicated and can easily be performed by the policyholder or vehicle owner. As well as being a data gatherer, the policyholder or vehicle owner will be able to subscribe for additional services that include aiding the driver to summons emergency services, and monitoring battery charge that will be an increasingly vital feature with the expanding popularity of electric vehicles (EV).
The insurance industry is extremely competitive and companies need to stay on the cutting edge by providing their clients with creative programs, and usage based insurance has this capability as well as increasing the accuracy of information. Usage based insurance is reality, and having telematics drive data gathering is highly useful for underwriters, insurance companies and policyholders by keeping step with the demands of the consumer.
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