Car insurance trends may come and go, but many of today’s are here to stay. In recent years, drivers have watched a revolution in the car insurance industry, with carriers developing stronger relationships with smart technology and data integration.
If you have not shopped for car insurance in a while, you may be surprised at how much has changed. Continue reading to learn the 5 trends you need to know about when shopping for the best car insurance coverage.
Expanded Risk Evaluation
Insurers no longer use only your driving record, vehicle, and age to determine your car insurance rates. Expanded risk evaluation is the new trend, as it provides insurers with an educated evaluation of your likelihood to file a claim. Insurers are using research data to create complex risk assessment formulas. These formulas are used to determine how much you will pay for insurance based off of factors like your credit rating, occupation, neighborhood, and more.
Pay as You Drive
An OBDII plug-in device is what some insurance companies use to evaluate driver habits and determine whether they qualify for safe-driver discounts. These small devices plug into your car much like a plug into an electrical outlet. These devices can take note of your driving habits, including the time of day you drive, the way you drive, and whether you slam on your brakes. The information is then sent to your insurance carrier, who uses the data to determine your car insurance rates.
Rewards for Safety and Loyalty
Many of Minnesota’s leading insurance carriers are beginning to provide greater rewards for driver safety and loyalty. These rewards vary from insurer to insurer. In some cases, it may come in the form of savings on your car insurance premiums. In others, it could mean receiving a rebate check for a portion of your premiums or paying a smaller deductible for your coverage. Regardless of how the savings are distributed, the goal for drivers is to work with an independent insurance agent to find a company who will reward your claims-free record and continued loyalty to their brand over time.
Low Mileage Discounts
Like companies offering pay-as-you-drive discounts, some auto insurers are using driver technology to determine how many miles are put on a particular vehicle each year. Voluntary driver device monitoring systems transmit odometer information to insurers. If you do not drive your car very often or otherwise plan to retire or begin working from home in the near future, this type of discount could save you as much as 30 percent on premiums when you renew your coverage. At Pentagon Insurance, we can help you review your mileage usage and estimate whether you could qualify for a low mileage discount from one of the many car insurance companies we represent here in Minnesota.
Forgiveness for Claims and Minor Violations
Everyone makes mistakes from time to time; that doesn’t mean you should be severely penalized for them. Although a spotted driving record or claims history make you more of a risk to insurers, an occasional traffic ticket or first-time fender bender should not cause your premiums to skyrocket. When it comes to finding the best car insurance, talk with one of our agents about which companies might be willing to look the other way when you have your first accident (Accident forgiveness), or if you get your first speeding ticket.
Thom Grubbs is an independent insurance agent and partner at Pentagon Insurance Agency. Outside of work, Thom likes to bowl, fish, spend time with his family, and volunteer at his Church. Let us know how we can help make life a little easier by talking over your situation.