The Internet of Things tends to create buzz among tech-enthusiasts with the way by which it connects objects to objects, objects to people and people to people. This has impacted countless industries and changed the lives of billions, but how might you ask is technology affecting the auto insurance industry?
Traditionally, auto insurance companies set pricing models and premium strategies on the basis of assumptions – how well do customers drive, their age, estimated distance they cover, and the kind of lives they lead. However, usage-based insurance plans are coming into the digital picture now more than ever.
Usage-based insurance (UBI), or sometimes-called pay-as-you-drive insurance, is becoming a popular alternative to traditional automotive insurance. Unlike traditional models, UBI is about measuring time, distance, driving behavior and driving location to figure out who should pay less for automotive insurance. UBI uses actual driving data to determine a fair premium for each client. Basically, usage-based insurance is about measuring time, distance, driving behavior and driving location to figure out who should pay less for their automotive insurance.
The information is collected through a number of ways, but most UBI models require the installation of a special device that wirelessly transmits data from the vehicle to the insurance company. New technology is even allowing data to be collected and sent through a driver’s smartphone.
This type of technology not only helps in determining a driver’s safety profile, but also allows Miami accident attorneys, Naples personal injury attorneys and insurance companies estimate accident damages while determining the fault of the driver during accidents.
If you or someone you care about has been injured or involved in a car or truck accident, contact the personal injury and accident attorneys at Weinstein & Cohen at 305-374-1011 239-793-3331, or visit fairnessforall, for an absolutely free and confidential legal consultation to learn more about your options.