Cheap car insurance with pay-how-you-drive policies
There's something stirring in the neighbourhood. In most situations, it's about the same size as a pack of cards. Not something you might consider interesting or threatening. Yet this is the power of technology creeping into the world of insurance and, for those who want to play this new game, it could represent big savings. Welcome to the world of telematics. For years, we've been accepting ever more computing power in our cars. Chips now decide how we can brake or corner more safely, how fuel efficient the car can be, and so on. Now here's the spy in the car. This little black box monitors how we drive and transmits it to our insurers. To many, this is a disconcerting thought. Those who have special heavy boots made to measure so their white vans can drive faster than the manufacturer ever dreamt, will feel fear. Every burst of acceleration, every instance of heavy braking, of swerving violently will be recorded. Why can this produce cheap car insurance? The answer all comes down to simple statistics. Years of history show that those who drive within the letter and spirit of the law have fewer accidents. This means always accelerating smoothly and braking gently, never driving faster than road conditions safely permit, and so on. Now we add in the time of day you drive and where you drive. If your driving pattern means you will always be on the roads at peak hours, the risk of an accident is high. But if you only drive when the traffic is lightest and in areas where there are fewer vehicles on the road, the chances of an accident are low. At least, that's true during the day. At night, the risks rise because the percentage of drunk drivers increases. So, if you're prepared to prove you're a safe and responsible driver with a big additional bonus if you live in a remote country area and never drive at night, you can make major savings on your car insurance rates. Yes, this intrudes on your privacy because the insurer will know when, where and how well you drive, but this can save you money. This can even work to the benefit of young drivers. They face the highest rates because they are more likely to be involved in accidents. But even teens can benefit from this monitoring, so long as they drive like their grandmothers, of course.