Are you a driver who wishes that auto insurance was more personal? If so, the emerging area of telematics insurance may be just what you're looking for. Not only will your premiums reflect how you drive, you can be significantly rewarded for driving safely.Telematics, or Usage-Based Insurance (UBI) is a growing area of auto insurance that allows clients to choose to have a small gps-enabled device installed in their vehicle which records driving habits. This 'black box' will track how you drive, ultimately constructing a driver profile unique to you. If you record a profile that shows you to be a safe driver, your monthly premium could be adjusted lower.As with many data hungry millennials, I find this technology particularly interesting as this profile will often be made available to you, allowing for a self-evaluation of your driving.Usage-Based Insurance takes into account metrics such as speed, acceleration, and braking in order to determine how safe a driver you are. In addition to this, the choice of roads you take, as well as the time of day you drive can also be added to your profile and can alter your premium.UBI is offered in most states, although the number of variables included in your profile can change from place to place. Progressive's Snapshot program in Arizona, for example, collects data on braking, time driving, time of day, acceleration, and driving frequency. In contrast, Snapshot users in Vermont will only have their braking, mileage, time driving and the time of day recorded.While some may be wary of enrolling in UBI due to privacy concerns, the data collected isn't all that dissimilar to sending out your location while requesting a ride from Uber, or using Google maps. Your information will only be used by the insurance provider to calculate your premium, with the results often decreasing the yearly costs of auto insurance by 10-25% for good drivers. UBI can be even more effective for those who fall into 'high-risk' categories, such as young or inexperienced drivers. Due to auto insurance being regulated at the state level, the availability of UBI may vary depending on provider and the state you live in. Progressive offers one of the most comprehensive programs in the United States, with only California and North Carolina not having a usage-based insurance option at this time. Usage-Based Insurance may not be for everybody, but it should be something you consider when looking for car insurance. For young drivers especially, UBI rewards you for your good driving habits, allowing you to save money. Usage-Based Insurance can also help you to become more aware of how you and those around you drive, ultimately making our roadways a safer place.Tags:Auto InsuranceUsage-based Insurance
