How Usage-Based Insurance (UBI) Programs Can Help You Save on Auto Insurance Costs
Usage-Based Insurance (UBI) is reshaping the auto insurance industry by offering drivers the chance to lower premiums based on their actual driving habits. Through telematics and data tracking, insurers monitor factors like speed, braking, mileage, and driving times to tailor premiums to individual behavior. For low-mileage drivers or those with safe habits, UBI can lead to significant savings, sometimes as much as 30% to 50%, compared to traditional insurance models that rely on generalized factors.
In addition to offering potential savings, Usage-Based Insurance (UBI) can also help drivers become more mindful of their driving habits. By providing feedback through telematics devices or apps, UBI programs encourage safer driving behaviors like smoother braking, slower speeds, and less aggressive acceleration. This can lead not only to lower premiums but also to reduced wear and tear on vehicles and fewer accidents. For drivers looking to improve their safety on the road, UBI offers valuable insights into their driving patterns, promoting a more responsible and cost-effective approach to auto insurance.
However, many drivers are hesitant to embrace UBI due to privacy concerns. The idea of being tracked by big tech companies makes some uncomfortable, even if it means lower premiums. Consumers worry that the data collected could be used beyond calculating insurance rates, potentially shared or sold to third parties. Despite assurances from insurers that data is anonymized and securely handled, the discomfort with constant tracking remains a barrier for widespread adoption.
Despite privacy concerns, UBI is gaining popularity, especially among younger drivers who are more accustomed to data-sharing technologies. As telematics technology continues to evolve and insurers work to address privacy issues, UBI is likely to become more mainstream. With the potential for lower premiums and more personalized coverage, Usage-Based Insurance could represent the future of auto insurance. Speak with your insurance agent today to learn more about using UBI auto apps to lower your insurance premium.
Locally owned and operated since 1976, BIS Improved Insurance Agency has delivered quality insurance solutions to individuals and businesses in New Jersey, specializing in Home, Auto, Business, Construction, Contractors and Healthcare insurance coverage.
Call us at (973) 683-1000 .
Our team of experienced insurance professionals is committed to helping you find a policy that fits your needs. We focus on providing personalized attention and quality customer service to create an experience that's difficult to find in today's market.
At BIS Improved Insurance Agency, we'll work with you to ensure that you and those you care about most are protected.
Trust us for your insurance needs in Succasunna, Ledgewood, Kenvil, Landing, Port Morris, Morristown, Morris Plains and anywhere else in Morris County, NJ.
We write Life, Home, Umbrella and Auto! Ask for a quote today!
A Referral is the highest honor a business can receive from a customer
We now offer 24/7 online client self-service. Visit our website at BISRM.COM and at the top of the page click on the link for CSR24 Portal to sign up.
Binding Notice: Insurance coverage cannot be bound, amended or cancelled via e-mail message or voice mail system without confirmation from an authorized representative of BIS Improved Insurance Agency.
