Little black boxes have been promoted as a great way to save money on your car insurance. They monitor your driving, so you get a quote based on your personalized driving rather than the standard for your gender, age group and experience. Is this the best type of car insurance for you, though? Here are three factors to consider.
1. All Driving Is Monitored
If you regularly share your car with someone else, both of you will be monitored. Even if you just let friends borrow the car as a one-off, their driving will be considered as part of your driving skills. Their bad driving could affect yours. Likewise, having a few bad days could affect your premiums.
However, all your driving being monitored could be beneficial to you. If you are the only person to drive your car, opting for this type of policy to monitor your safe driving could help you save money.
2. Offer an Exact Mileage
While you may say that you only drive 10,000 miles a year, your insurer may increase that slightly for the sake of premiums. This is because the assumption is that you are giving a low-ball amount. The benefit of the usage-based car insurance is that your mileage is monitored and your supplier gets the exact mileage figures at the end of the year. You may find that you've overestimated and you end up saving because of that.
This can work out as a disadvantage to you. There are times that you will underestimate, or you don't factor events that have happened or job changes.
Wallet Hub states that if you drive more than 13,500 miles a year, you won't likely benefit from this policy. This is the average annual mileage the insurers take into account and any more than that they will charge extra for.
3. Don't Mind Being Tracked
How would you feel about all your driving being monitored? Your car insurance company knows exactly where you are, what speed you were driving at and just how many miles are currently on the clock. They know how hard you brake and whether you have been an aggressive driver.
Some of these factors make people uneasy. They don't like the idea of constantly being tracked and monitored. If you're one of those, you won't find a usage-based insurance policy right for you.
Not all the pros and cons come down to money. In many cases, it is about how you feel having your driving monitored and whether it will only be you driving. If you need more information, contact a company such as Horgan Insurance Agency.