Delaware Business Insurance Update from CNC Insurance Associates, " Personalization of Auto Insurance Could Reduce Rates !" 12-25-18

Insurance rates may go down in the future because of "auto personalization". What is this you ask?
Imagine being charged insurance rates based on your personalized use of your auto. If you drive very little next week, then your rates go down. If you drive the speed limit most of the time, your rates go down. If you avoid hard braking and tailgating, your rates go down. Get the picture?  The use of telematics has given the insurance industry a chance to personalize insurance costs directly to the users' driving habits. Gone may be the days of surcharging a male driver under the age of 24 just because they are young. If the telematics show that he can drive as safe and responsible as a 40 year old, then his insurance premiums should be comparable. If you go on vacation and park the car for two weeks, telematics will inform the insurance company that there has been no risk, and your insurance premiums will reflect that.

Now as good as this sounds it will work the other way too !   Day to day bad drivers, even with no accidents are going to be charged more because the computers will tell on you. Imagine getting a higher bill next week because you ran 3 red lights !   This will be very interesting.

One way or another, computers in cars are going to be like "big brother" watching your every move, or every driving action.  Good or bad, you will pay premiums respectively.

Until next time be careful out there and know your risks.

G. Kevin Nemith- President CNC Insurance Associates, Hilb Group
1-877-262-3276 toll free

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