With most car insurance companies, there is usually only one way to pay, depending on your driving record, how much coverage you need, and your credit. This may be a boon for some drivers. A spotless driving record doesn’t always mean a lower insurance rate. If you want a lower insurance rate and don’t drive much, then consider the PAYD (Pay as You Drive) program that is offered by Hammer Insurance.
What is PAYD (Pay as You Drive) Insurance?
Also known as usage-based insurance and telematics are used to offer drivers like yourself, more options that are tailored to your driving patterns. These programs give you an incentive to drive less and more carefully, depending on the information monitored by your insurance company. The more positive you react, the less you pay.
Telematic programs may record the following:
- Miles drove
- Operating frequency
- Acceleration and braking
As this technology increases in use with many insurers, more complex programs are looking into driving behavior. The telematics devices installed in your car will relay your driving information about how and when your vehicle is driven. These devices track and provide immediate feedback that can help you become not only a better driver by changing any of your bad driving habits, but also get you a better price.
Types of Usage-Based Insurance Mechanisms
- Smartphone apps
- Plug-in devices
- Hard-wired devices (most popular)
If you decide this is the program for you, you may see up to a 30% reduction in your insurance costs, or you can ask for one month free car insurance if you need it. This is dependent on the insurer, but any discount on your driving is relatively valuable. Though many PAYD programs aren’t a regular practice with the majority of insurance companies, at Hammer Insurance Rialto, we proudly offer this service to you.
We provide the device to you. Once you have it installed, the monitoring process is started. As information comes into our central control for review. We’ll check to see if you drive during peak hours. These hours are when the majority of accidents will occur. Driving outside these hours may give you a better chance of an insurance discount. The fewer miles you drive also means the smaller the chance of getting into an accident. The telematics device in your vehicle will also look for active braking as a sign for less cautious driving. Also, smartphone use and inappropriate speeding are also tracked with some devices. Your driving behavior will always have some effect on your insurance premiums. This includes new and current policies. The safer and more cautious you are as a driver, the better chances of not seeing any sort of premium increase. If you don’t drive a whole lot, or if you’re curious about the PAYD program, contact us by email or give us a call to discuss whether or not this will be the best program for you. We’ll answer your questions and will help you make the best decision regarding your car insurance.