4 Reasons Why Use-Based Insurance is More Popular in Auto Insurance Today

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5-star auto insurance Raleigh. Cheap Auto Insurance Raleigh

When you research auto insurance Raleigh policies, one thing you will encounter is use-based insurance. This type of insurance is still relatively new but has gained tremendous popularity among car owners. However, many are still confused about it and wonder whether it’s the right car insurance.

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What is use-based insurance? Use-based or usage-based insurance, from the name itself, means that your premiums are based on how safe you drive. It uses telematics to gather information about your driving habits, including your driving speed, acceleration, braking, mileage covered, and usual driving time. Your driving scores is derived from these stats. The better your score, the better your insurance rate, meaning you can pay lesser premiums if you drive safely.

5-star auto insurance Raleigh. Cheap Auto Insurance Raleigh.

Why should you consider use-based auto insurance Raleigh? Here are four reasons.

Use-based insurance offers lower premiums

Most car insurance offers up to 25% discounts for car owners who choose the use-based type of insurance. So, if you’re generally a safe driver, you can pay significantly lower premiums than other insurance types. Moreover, low-risk driving habits, such as driving outside the rush hour, can qualify drivers for more discounted rates. Thus, through use-based insurance, you can reduce your car insurance bill.

Drivers are encouraged to drive safer

Once you choose use-based insurance, you often get tips for safe driving along with your driving score. When your driving score is good, you can enjoy discounts on your premiums. And since many drivers want to qualify for lower car insurance bills, they try to adopt safer driving habits, such as fewer sharp turns or hard brakes and not exceeding speed limits. This advantage works because drivers drive safer and insurance companies pay lesser insurance claims.

It becomes easier to track stolen cars

The use of telematics, specifically GPS technology, in use-based car insurance provides data for quick tracking of vehicles. In cases where a car gets stolen, telematics can help locate and recover it.

Telematics helps investigate car accidents

Use-based insurance utilizes telematics to monitor driving habits. And since data is gathered, it can be readily accessed when accidents happen. Using the available information, insurers can determine which driver is liable for damage and injuries, thus honoring the correct insurance claims and identifying frauds.

There are many reasons why usage-based auto insurance Raleigh has become widely popular today. Aside from paying lesser fees, car owners also become safe-conscious drivers and enjoy other benefits. If you’re still exploring auto insurance options, this might be one to heavily consider.

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