Insurance Basics: Everything You Need to Know

Drivers Continue To Seek Insurance Technology Trends As 2019 Approaches

As 2018 nears its end and the new year approaches, people often tend to look forward toward upcoming trends. Drivers, in particular, seem interested in auto insurance companies that are offering improvements to technology trends. In 2018, you may have seen some technology trends as they appeared, but they barely scratched the surface. Now, more and more auto insurance companies are attempting to win over drivers using technological advancements. So, how does that benefit you, and what trends will matter?

Tracking-Based Driving

2018 drivers got to see a few companies introduce tracking-based driving. As 2019 draws nearer, drivers will see a greater number of auto insurance companies offering the same tracking-based driving rates. When auto insurance companies set your rates, they often base them on various factors, including the state of your title and registration and other demographics.

Unfortunately, things such as your gender, age, and even your marital status can affect how much you pay for your auto insurance. Discovering that fact is frustrating for many drivers who bring a clean driving record and great driving habits to the table. They feel that they shouldn't have to pay more based on demographic factors. Yet, there are still several companies that charge drivers more if they are a woman, unmarried, or have bad credit.

Thankfully, auto insurance companies are starting to pay attention. Therefore, you will see a great deal of companies offering to track your driving habits. Tracking may require a device that plugs into your car, which is often referred to as telematic tracking. Another tracking option may require you to download an app on your phone.

The device or app will track your speed, the distance you drive, the hours you drive, how well you brake, and other factors. The better your driving habits, the better chance you will have at saving money on your auto insurance. In other words, auto insurance are willing to use technological advancements to make insurance more affordable to good drivers rather than basing their rates unfairly on demographic factors.

Encouragement to Drive Safe

Part of what makes technological advancements to the auto insurance industry so important is that it will encourage people to drive safe. Keep in mind that distracted driving continues to prove problematic for many. Distracted driving often occurs when a person uses their cellphone while operating a vehicle. Unfortunately, roughly 3,450 people lost their lives in 2016 auto accidents as a result of distracted driving.

As more and more companies choose to track driving habits, it encourages drivers to pay more attention to how they behave when behind the wheel of a car. If a person knows that they are being monitored, they are less likely to reach for the phone or drive inappropriately. Instead, you are continuously focusing on your driving to ensure you receive an affordable car insurance rate. Therefore, it may just instill better driving habits overall.