The way insurance companies have calculated their premium rates has never changed over the years. All that has happened is that, with bigger and better computers, more numbers are collected and crunched than ever before. We know more than we used to know. We have greater certainty. However, one thing has never changed. Way back when people were starting to drive, it was obvious that the more people left their vehicle at home, the fewer claims they made. Put this the other way round and the driver who does the most miles when there are other vehicles on the road is the one most likely to be involved in an accident. So insurers always wanted to quote lower premium rates to low mileage drivers. But they hit a problem. The moment they asked drivers how many miles a week they drove, they always came up with very low answers. Sadly people are not as honest as we would like. If they think they may pay less if they lie a little, the majority will lie to see if they can get away with it.
Faced with a tide of dishonesty, the insurers tried various options, the most successful of which was a physical examination of the odometer once a month. Except a surprising number of people found ways to wind back the meter or disconnected it when driving longer distances. People can always find ways to game the system. So it has taken until now for technology to catch up with the insurers’ needs. Telematics can now be fitted to all the main makes and models on the road. These are robust, i.e. they will not break down the first time the vehicle goes over a bump in the road or gets a soaking in the rain. More importantly, they monitor the vehicle continuously in real time. So if the signal is switched off for significant periods of time, questions will be asked. The vehicle will not be under repair that often.
So here’s the choice for you. If you genuinely have a low weekly mileage and mostly drive at off-peak times of the day, this will represent big savings for you. All you have to do is get in a good range of Car insurance quotes and find the best rates. Then, if you do not mind sacrificing a little of your privacy, you sign off on the deal and bank the savings. But if you object to the insurers knowing where you drive and technology making assessments of how well you drive, you get car insurance quotes for conventional cover and pay the usual premium rates. For those who drive close to the average number of miles a week, it may be a difficult decision. The advantage in accepting pay-as-you-drive is that, if you actually drive safely, there will be a record of this and you will earn discounts anyway. Your choice!
Insurance coverage for vehicles is as varied as the vehicles themselves. It is always best to understand the different types of insurance for your vehicle so you'll know what you will get in case you got into an accident. The law also requires that anyone who owns a car must have an insurance. The premium that you will pay largely depends on several factors like your gender, age, make and model of your car, and more.
Car insurance is one thing that all car owners should have. While not everyone wishes that they will use it, the knowledge that insurance covers you and your vehicle for any accidents will give you peace of mind while driving. Vehicles' insurance coverage does not only include payment for the damages on the car but an assurance for your medical fees as well. Properties that are damaged by the vehicle involved in the accident are also covered. In short, insurance coverage for cars protects the owners from unwanted expenses that may be incurred should an accident happen.
Car insurance premium can really burn a serious hole in your pocket. There are, of course, ways on how you can keep your insurance premium low. The best way to do it is to properly maintain your vehicle and keep it in tip-top shape. This would ensure that your vehicle is always running at its best and will reduce the chances of accidents. In most accident cases, 5% of these incidents are caused by faulty engines or tire blowouts—situations that could have been avoided with the right car maintenance.