Thanks to one insurance comparison website, a new discount car insurance policy option in the form of pay as you go insurance has been introduced to the insurance market.
Motor car insurance provider Insurethebox recently allied themselves with well-known price comparison website tiger.co.uk in order to provide customers with insurance based on a technology called telematics. A device called a Clear Box can be installed on any motor vehicles that wish to put the new system into practice, which will monitor the driving practices and behaviour of the pay as you go policyholder.
The car insurance rate will be modified directly through driver performance, as those motorists who keep a clean and accident-free driving record will be rewarded by Clear Box with up to 100 insurance miles free of charge for those who can prove that they are cautious and safe drivers whilst on the road.
The new policy could be a boon for both new and young drivers, two classes of motorists who are often on the receiving end of very high car insurance quotes when insuring their vehicles, as data collected by the Clear Box device enables the driver to both showcase their effective safe driving practices and their careful manner while behind the wheel, which could then be taken into account in order to reduce the insurance premiums of these drivers, who statistically are the most expensive to secure car insurance cover.
The overall cost of the driver’s car insurance would be based on several key factors, such as the number of miles covered, the average speed maintained whilst driving, and the manner of roads driven upon in premium calculations, which will enable car insurance companies to paint a custom-tailored picture of what kind of insurance any given driver would need, which could be used in lieu of the current practices of basing premiums on many broad assumptions based upon details such as address, occupation, and age.