Black-box technology- Pay as you drive insurance scheme
Posted by Jose Lopez on May 17, 2010 | No Comments »
Car insurance companies have always been piling people into different categories based on generic and broad judgements regarding their exposure and likelihood to get into risks and crashes. These groupings work for you if you are actually very much prone to risks and crashes. But beware, because they can also work against you. For instance, you are an occasional driver who gets the vehicle out of the garage on rare occasions or during weekends, you fall into a category of people who are less exposed to risk than a person who drives daily and especially during those rush hours on the road. You will be offered a cheaper insurance premium for your car by many insurers. You can compare car insurance premiums by different companies and find the best one among them. But how do companies know about your driving habits? Most insurance cover policies are not elaborate enough. But the good news is, that latest technology is capable of finding that out for you avail discounts in your insurance premiums.
‘Pay as you drive’ insurance cover is an upcoming criteria for availing discounts in premiums that is gaining popularity in UK very fats. It requires the insured to fit a black box in his vehicle that is capable of recording details about the journey of the vehicle including speed attained, time taken and which route has been taken. This data which is collected is automatically sent back to the insurer company which is then used by them to calculate the monthly insurance premium. Your insurance premium relies entirely on how you drive the vehicle. Expensive premiums are charged during rush hours as compared to weekends. Also, driving on urban roads will be more costly than driving on country roads.
Technology has now entered more into our lives to make it all simple for us. But before selecting any insurance company, one must compare car insurance policies other than ‘pay as you drive’ as they still may come cheaper to you.
Compare car insurance with compare.com – the fastest growing comparison website.
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Tags: Insurance, Insurance Scheme