Each time I write an auto insurance policy, I have to ask my clients:
– how many kilometers they drive
– do they have any traffic tickets on their record?
– have they made any automobile insurance claims?
All of this information goes into determining the rate for their automobile policy, and helps to qualify drivers for certain discounts, and determining risk of them needing to make a claim in the future.
Each year that someone drives without making a claim against an automobile insurance policy is cumulative and counts toward assigning you a Driving Record, often between 0 and 9. A Driving Record 0 would be subject to the highest rates, and 9 enjoys the lowest.
When a driver has three years with no traffic violation convictions, they will qualify for a conviction-free discount.
Optional coverages can be purchased that protect a driver’s claims-free status and conviction-free status if they have one “slip-up”, but these cost extra to have on your policy.
So what about bringing the cost down?
While few insurance companies have gone all the way to billing you by the actual number of kilometers driven each month, some are introducing use-based insurance programs that analyze your driving tendencies and apply a discount to the policy based on good driving patterns.
For example, it is possible that drivers regularly speed even if they do not have any tickets on their record. If it seems unfair that you are both benefiting from the same conviction-free discount despite their fast driving, then a use based insurance program might be right for you.
Typically, things like speed, hard braking, and a rapid acceleration are among the items used to calculate your individual discount. Recently, we have seen the addition of distracted driving and if you use your phone while on the road, that will be counted against you.
I am happy to be able to offer this as an option to my clients and if it is something you would like to discuss for your own policy, call Orr Insurance.