Cheap Car Insurance and Car Safety – What Is Pay As You Drive Insurance?

The term pay-as-you-drive insurance has been in use in the insurance industry for a long period of time, but its meaning has changed Iihs Suv Ratings significantly in recent years as a consequence of the introduction of new technology, primarily technology known as telematics.
When assessing a risk, an insurance company will look at a number of variables to determine the level of risk, and subsequently how much to charge. In car insurance these variables normally refer or relate to the age of the person, the occupation of the person, where the person lives or permanently resides, how long the person has been driving for, the physical location of where the driver spends most of their time, the driving record of the person concerned, how much of a no claims bonus they have and in many ways most importantly their average annual mileage for a year.
The significance of this is that the insurance company will be able to tell based on their average annual mileage a lot about their driving record, how safe they are when driving, how much of a risk they are and subsequently how much to charge them as a risk. This has been the traditional sense of what pay as you drive insurance has meant in the car insurance industry.
This has changed with the introduction of new technology known as telematics, which is sometimes referred to misleadingly, as black box technology. Black box technology is normally thought of as being a black box that is installed in aircraft and similar machines that give technical data to investigators when there is a crash or subsequent damage where such technical data will help investigators find out exactly what happened.
Similar technology, and similar black boxes can be available to be fitted in cars but this is not what this technology refers to. Telematics is much more about installing technology in cars that gives the insurance company technical data as to the driving performance of a particular person driving the car. This normally refers to things that the car can measure such as speed, handling, breaking, time of day or night when the person is driving, other occupants of the car and general information pack and then assess how competent the driver is.
This information is by its very nature very intrusive, but is being sold on the basis, mainly by insurance companies, that it gives them information that can be used to personalise quotes for car insurance for people, that will make them much more realistic in terms of cost for that particular person. Where this technology particularly applies is to young drivers, whom insurance companies focus on as being what they categorise as high-risk drivers, and a group of drivers that they perceive as being potentially likely to claim on their insurance policies, and as such they charge some exorbitantly high premiums.
There is some logic to this argument by insurance companies, and sometimes the introduction of this technology is virtually the only way that a young person can actually afford any type of car insurance on a vehicle they own or are driving. The real danger is that this type of technology will be used by stealth, both for those people who the insurance industry classify Car Maintenance Schedule App as young drivers or more generally for the entire population of a country. This obviously has acute implications in terms of personal data and intrusion. Although there is huge competition in the car insurance industry, some type of car insurance is always a legal necessity in most countries and therefore it’s not something that people can simply ignore.

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