Usage Based Insurance - You asked, we've answered!
Q: If I decide to take a long uncommon trip across the country for a vacation, would the usage based system misjudge me as a very active driver and charge me a higher premium because of that?
A: A "one off" will likely not change your driving profile. It’s not just the number of kilometers driven that determines your rate with usage based insurance, it is also the times of day that you drive. The data pulled from the device will show that it was not part of your usual driving pattern and likely not impact your rate. Your insurance professional should be able to answer this with respect to your specific insurance company.
Q: With usage based insurance, what about hard braking? If I slam on the brakes to avoid going through red lights a few times, will it know that I slammed on the brakes for a good reason?
A: Usage based insurance is based on driving patterns. If the data shows that a driver consistently brakes hard, it may be an indication of a driver who follows too closely to the car ahead putting them at greater risk of a rear-end collision.
Q: If usage based insurance doesn't decrease your cost, can one opt out?
A: Yes. It is voluntary and a driver can opt out of the program. You can compare your car insurance rate to see if you can save money with usage based insurance and then make your decision.
Q: How long will it take before they start increasing rates for those who choose not to have one of these gizmos because they claim you're a greater risk because you might be driving like a maniac?
A: Currently, usage based insurance is used for the purpose of discounting rates- not increasing them. The program is voluntary so there is no penalty for not participating.