Did you know that it is often possible to use your smart phone to help you score cheap car insurance? If not, you may be surprised to learn that getting much lower rates on your car insurance truly can be as simple as downloading a single app. This is because rather than counting on generic data to assess risk when determining your insurance rates, insurance companies are now offering individuals the ability to download a special app that collects personalized data regarding their driving habits. Using this personalized data helps to ensure that you are rewarded for your safe driving habits. Read on to learn more about the data these apps collect and how they can help you to score some cheap car insurance with very limited effort on your part.
Understanding What Type Of Data These Apps Collect
There are quite a lot of factors that go into determining how likely it will be that you will need to file a claim against your insurance policy. The app will collect information regarding these different factors. Some of these factors include:
- How much time you spend driving each day
- What time of the day you are on the road
- How quickly you accelerate
- How quickly you stop
- Your phone usage while driving
- Your average speed while driving
Understanding What The Insurance Company Does With This Data
Once all of the information regarding your driving habits has been collected, this information is sent directly from the app to the insurance company where it is analyzed to determine how big of an insurance risk you are. For instance, if you routinely spend a lot of time on the road or frequently travel during rush hour or during the late-night hours, you will be considered a higher risk than someone who spends a minimal amount of time on the road during off-peak hours.
Understanding What Type Of Discount You Can Expect
Most insurance companies will guarantee you at least a base discount in exchange for agreeing to install and download the app. The insurance company will also inform you of what the maximum discount allowed is. The total amount of your discount will be personalized once your evaluation period comes to an end. This evaluation period typically lasts for about a month but can vary from company to company. Once your discount has been applied to your policy you will be informed by the insurance company regarding the total amount of this discount. For more information regarding cheap car insurance, contact a provider.