Usage Based Insurance (UBI) | Pay as You Drive, Benefits

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According to many policy experts, there are many types of insurance to be chose but this type of insurance coverage actually uses a device/machine that will send the driving data (100KM, 500KM, 1hr or day) to your insurance company. Companies who use this type of mechanism will promise that they will not use the data to increase your insurance policy rates.

Hello Readers, again welcome in my blog. Here today we discuss about some insurance. “Insurance” is need when you have motor vehicle or it is a concern for your health. Many of you were confused about (UBI) Usage Based Insurance, that’s why we here. Let’s get on the seats and start our journey.

If we calculate the cost of your vehicle insurance or policy plan based on the driving behavior of your vehicle is actually a trending concept nowadays which is called Usage Based Insurance (UBI). Many owners (the insurers) can offers you some deals which benefits both payees and insurers like low price just for choosing Usage Based type of insurance ploicy/program.

If you are that type who are seeking for insurance with some offers then you can also get additional offers for the limited distance which maybe calculated as mileage means with the help of device it is calculated that how much you travel and safe ways of driving under the (UBI) Usage Based Insurance policy. If you are really interested in buying that type of policy or insurance then you must know that before choosing that type of insurance you must have to find out the advantages and disadvantages of the usage-based vehicle policy or insurance, which is in many company also known as by name of a pay-per-mile insurance, pay-as-you-go insurance, or pay-as-you-drive insurance policy.

If you think about to choose this type of policy or insurance, then your policy or insurance company will collects the data of your vehicle about how well and how much you drive using a smartphone app which maybe defferent for every company or by using plug-in device in that is adjusted in your vehicle (Car, Bike etc).

Is It Beneficial ?

As i mentioned above in this type of insurance (UBI) Usage Based Insurance, the company who provide that insurance will have to agreed with to install their telematics devicein your bike, car etc. When installation finished, after that all the paper work stuff when you drive your vehicle then the device that has been installed by the company will able to sent the information to insurance companies so that they can review and report that how you are driveing your vehicle.

There is so many benefits of Usage Based Insurance like:

  • If you are a safe driver then there’s a discount for you.
  • With UBI there is chance to achieve good Driving Habits.
  • Accidental investigations simple to solve.

In this insurance policy-Usage Based insurance (UBI), the insurnace company will find it easier to solve investigation if somehow you meet at any accidental situation. The company will find who was at fault and how, what happened. Then the insurance claims process starts and they use this data to help you to get claim faster and easily.

As i mentioned that a device is installed in the vehicle then you might know that you are being tracked. As a matter of fact many drivers will choose this insurance policy beacuse of discount and they also want to avoid the chance of getting any penalty. This is actually a great concept because driver will have to pay less and plus peoples on the road will always safe.

Usage Based Insuarnec is a type of strategy that actually give offers or rewars to that drivers who always follows the rule like avoiding sudden braking or accelaration highly without any reason and kast but not least always be in speed limits. A payee can earn as same as 30 per-cent of their annual premiums.

Is there any Drawbacks ?

As we read above there’s some tight rules in UBI like driver’s can’t do hard braking and acceleration etc. But sometimes it maybe necessary to apply certain amount of hard braking and acceleration. As a matter of fact a machine can only behave like a machine, they don’t know when and how they have to pretend. As we know UBI requires a telematric technology that will not able to recognize when a drive is being defensive or he behave like a reckless driver.

For example : You are on your bike and going to work like always, but somehow any person will came in front of you then it is mandatory for you to apply hard brake to prevent both you and the person on road from any damage. But the telematric technology will see you as reckless driver, it’s a negative mark for the telematric.

There are so many situations that any person can’t controll even if you are a good driver on road, as matter of fact telematric will always give you negative for that. So what if these reports will sent to that UBI- Company, i’ll explain- after see “High Risk Driver” signal from telematric machine they will decide to do something like: remove your discount, insurance premiums will be raised and also the can stop renew your policy. I guess it’ll be a biggest disadvantage of UBI (Usage Based Insurance).

What about your privacy? Guess what if you are going to soewhere that you don’t want to tell anybody but here is the twist that nobody but the UBI copmany can actually track your location as i mentioned that they installed an telematric device in your vehicle. Everyone is not comfortable with this type of rule & regulaton adn they don’t want their location history to be recorded by any company which may also create a risk ofcyber attack. So think about it twice before buying nay UBI policy or insurance.

Conclusion

So thinking about that you choose it or not? probably it’s totally depends on you but i can help you a little bit. You can choose this type of insurance if you are a kind of safe driver or you have to work mostly remote like wrok from home and also having a low milegae log or commute in general. If you meet atleast these circumtances then maybe usage-based insurance could help you in down you insurance rates, also some companies provide offers and discounts for the safe drivers.

Make sure to comapre all the plans of UBI instead of stuck at once. Whenever you are going to buy any type of insurance then it will be really helpfull that you gain all the related information. Like in UBI as we know they use Telematric device to capture the record of your vehicle then it’s mandatory to know that what kind of data they collects. There are a few types of telematric device or app that can be use for the job. You have to read all policy agreements whether it’s offline or online. Thankyou

The End | Thankyou for reading this please comment if you find something interesting in it.

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