The telematics device that is fitted by the auto insurance providers in your car allows them to track various aspects such as the time of the day when you use the car, the number of miles you drive, the speed, the amount of acceleration and also how often you apply brakes. Permitting your auto insurance provider to install this monitoring device will entitle you to a savings of up to 30% annually on your auto insurance policy.
Evogi’s President, Bob Mathe says that currently close to 1 percent of the auto owners are enjoying the benefits offered by Usage Based Insurance, also referred to as UBI. Evogi is one of the companies that is involved in the design and engineering of monitoring solutions for various insurance providers. According to Mathe, this number can go up to 20 percent in the next five years. He also opines that the figures could go up to 30 percent by 2020.
The senior manager at Deloitte Consulting, Mark Hill says that an increasing number of insurers are beginning to understand the importance of usage based insurance policies. He says that the auto insurance providers that have not yet made this insurance a part of their offerings are way behind their competitors and have chances of losing out their customers to other providers who offer usage based insurance to customers keen on curtailing the cost of their auto insurance policies.
Though the UBI was looked upon with apprehension by the auto insurance providers as well as the drivers when it just began to inch its way into the market, today it is being accepted easily. Most car owners are willing to share their personal driving details with their auto insurance providers to ensure they do not have to bear the brunt of the rising auto insurance costs.
One of the recent surveys conducted by Towers Watson has revealed that over 80 percent of the car owners are willing to have the telematics device fitted in their vehicles.
