Cheap car insurance for the safe, low milage driver
The actuaries who calculate the risk for insurance companies have always known that, the lower the annual milage, the lower the risk you will be involved in an accident. There’s always been the same problem about giving discounts. People are economical with the truth. Give a financial incentive like lower premium rates, and they will swear on a stack of bibles their vehicles gather dust in the garage. Since the insurance company cannot afford to employ a team of inspectors to monitor garages and follow drivers around to verify the actual number of miles driven a month or year, the insurers have either had to “believe” what people say or withdraw the offer of a discount. For decades, the majority of companies have only offered token discounts in situations where a claimed low milage is reasonably credible, e.g. when the insured is retired. But now technology is riding to the rescue of both insurer and insured.
Over the last twenty or so years, there’s been a design revolution. In the pre-technology days, vehicles were essentially mechanical. Now they are “intelligent”, i.e. a vast number of chips control the way the vehicle handles and responds when being driven. The reason for this change has been the ability to make a chip and control circuitry that’s strong enough to survive in the real world. Equally important is the cheapness of these chips. If they are physically located in the engine compartment, they must be able to stand the changes in temperature from the prevailing to the heat of operation. There will be vibration and shocks as the engine operates and the vehicles hits potholes. Put the chips in the suspension, wheel or braking assemblies and there will be rain, snow and ice to contend with. It’s been remarkable to watch this happen so quickly.
Now the vehicle can tell you when you need new brake pads or tires. If it’s stolen, a tracker device can tell you where it has been taken. A distant garage can also be told when a problem develops and what needs to be done as a repair. This monitoring and communications facility is just what the insurance industry has been waiting for. Now the technology can be enhanced to give the insurer a real-time report on when, where and how far you are driving. Better still, it can report on how safely you are driving. Since the technology already sits inside the braking and suspension systems, it can tell the insurer if you swerve violently or brake sharply. Led by the appropriately named Progressive, there are an increasing number of usage-based policies on offer.
Why have these policies been offered by more insurers? As it is, the safest, low-milage drivers are moving to the companies with technology. Facing the possibility they will be stuck with the high-milage, reckless drivers, the other insurers have been running to catch up. Now, if you want to find cheap car insurance, you will find it if you are actually a low-milage driver. Some insurers are offering up to 40% discounts to attract the safest drivers. So the next time you are using this site to get car insurance quotes, look for the usage-based policies. For once, technology is on your side.