Usage Based Auto Insurance – Should You Use Telematics?

Drivers Save Thousands with Usage-based Auto Insurance

There’s no stopping the relentless rise of auto insurance costs. And for some drivers it is very costly. Consider younger drivers who might pay from $2500 to $5500 for annual coverage, or those with multiple speeding tickets and moving infractions.

They have trouble finding car insurance let alone cheap coverage from an insurance company and typically, their rates rise up 100% to 300% more than we pay. They move downtown without a vehicle or live “insurance” poor lifestyles as a result of their circumstance.

Photo Courtesy of Linkedin

You may be in this situation or know some young drivers who can’t drive because of the cost of car insurance. There’s something you need to tell them about. It’s called usage based auto insurance.  UBI lets drivers pay coverage on the driving they actually do and how they do it using a telmatics device.

If you want a lower rate, consider a UBI based insurance policy.





With the telematics devices installed, drivers typically are more conscious of how they accelerate and brake and the types of speeds they travel. UBI turns out to be beneficial for everyone  – it lowers insurance costs. We know drivers drive much too fast, change lanes dangerously, and slam brakes on, and this is precisely where accidents happen.

It doesn’t matter whether you’re driving a classic luxury car, truck, motorcycle, or new electric car, insurance rates will rise. The only recourse you have is usage-based insurance and shopping around for a better quote. When self-driving cars hit the road, auto insurance rates for human drivers will explode.  Get the jump on this and explore usage based auto coverage.




Auto Insurance Los Angeles | Truck Insurance Denver | Car Insurance San Diego | Car Insurance New York | Vehicle Insurance Quote Boston | Auto Insurance Bay Area | Auto Insurance Miami | Car Insurance Toronto

The Usage based telematics devices help to discourage dangerous driving habits. For young drivers, it’s a godsend because it may prevent them from developing bad driving habits, and helps avoid that first accident.

It’s true, car drivers from Los Angeles to Toronto to Miami to New York are eyeing a new trend in automobile insurance coverage. It’s called usage-based auto insurance.




The global insurance telematics market size is forecasted to grow from US$857 million in 2015 to US$2.2 billion in 2020. That is a $1.3 Billion growth in 5 years. This is a major trend in the auto insurance industry, comparing equally to the enormous trend buying insurance online.

UBI telematics is all about monitoring driving, collecting data, and tying car insurance premiums according to how, where, and how much the driver drives.  It’s being adopted at a faster rate in Europe, however adoption the US and Canada has been a little more subdued. How much can you save with UBI? Some reports have it at about 12%. If your insurer doesn’t offer usage based insurance, consider switching insurance providers. And if you drive a luxury model car, telematics is perfect for certifying your safe driving and limited mileage.




What are Usage-based Car Insurance Policies?

cmtelematics
Photo Courtesy of CMTelematics

The term usage-based auto insurance describes the use of GPS or cellular activated electronic tracking device to monitor the insured driver’s speed, braking and acceleration habits, along with distance and time driven. The policy is normally one where you may be offered good rates in future (a discount) if your driving habits meet the company’s safe driving guidelines. The device may be one affixed to your automobile or could use a plug-in device on your own smartphone. The trend is to use your smartphone’s own software and hardware sensors.

CMtelematics of Cambridge Massachusetts is a leader in telematics technology and they’re leading the charge into smartphone telematics devices. Their claim: “Personalized scores, continuous feedback, and incentives result in better driving behavior. Customers report 34% fewer crashes and 20% less-severe claims.” Their DriveWell technology uses machine learning and statistics to accurately infer key metrics about vehicle mileage, road types, speed, acceleration patterns, phone distraction, and collisions).

What Telematics or UBI devices measure:

  • Braking habits
  • Acceleration and cornering behavior
  • the distance the car travels
  • the time of day the vehicle is driven
  • where the vehicle is driven

UBI insurers are a little vague about how it actually judges driving behavior and by not divulging this, drivers aren’t sure if the UBI system is accurate.  Is UBI simply a strategy to glean more profits from consumers? If drivers are refusing to adopt UBI telematics, it probably indicates distrust.

Some drivers themselves consider UBI telematics a key to encouraging better driving behavior.  And some data now is suggesting that drivers actually do drive more carefully after installing the devices. Researchers aren’t quite certain whether this improving driving behavior is due to a desire to lower their rates, or because it’s a cue to behave more responsibly. Whichever way is true, the use of these tracking devices is a big turning point for the industry  The “Big Data” people are really onboard with this since all of this driving data could be collected and used for commercial, profit-generating purposes. You’d think the insurance firms would be willing to lower your rates even further to gain better access to the data, and to lower accident claims.

UBI Infographics – Driver Attitudes

Surveys are showing a gradual interest in UBI policies if they get a discount. It’s not a reach to say aggressive drivers have no interest in having their driving behavior assessed and a price attached. The aggressive driving factor is the issue that covers gender, age, and even usage matters.

UBI-survey

lexisnexisubi

Who Will Pay for the Insurance Industry?

Like Alcohol and tobacco pay a lot of government bills, bad drivers may actually be where the profit margins are for big insurers. The one lost fact here is that in our society, bad behavior is taxed and punished financially and it’s a big boom to profits when insurance companies such as Progressive, Geico, Allstate, Mercury, Liberty Mutual, etc. have an excuse to raise rates. Bad drivers are actually a profitable group and it’s acceptable to charge them to the hilt (even male drivers who have never had an accident).

With self-driving electric cars on the horizon, the insurance industry is preparing for a substantial drop in revenue. Whether UBI is the way they want to go is questionable. The final thought is that UBI can help drivers save a little on their insurance. As I pointed in my car insurance quote comparison, bigger savings are accrued from shopping online.

Automobile drivers have direct access to hundreds of insurance companies. Are you reaching out to hear them?

Check out insurance for cars and trucks in your city:

Auto Insurance Rates | Real Estate Marketing | Auto Insurance Phoenix | Auto Insurance Quote San Francisco | Auto Insurance Quotes Boston | Lowest Auto Insurance Quotes Toronto | Car Insurance Quote Los Angeles | Car Insurance San Diego | Indianapolis Auto Insurance | Chicago Auto Insurance Quote | Insurance Quote Truck Detroit | Miami Truck Insurance | Denver Car Insurance Rates | Seattle Best Car Insurance | St Louis Low Car Insurance | Car Insurance Quote Philadelphia | San Antonio Auto Insurance Policy | Minneapolis Lowest Insurance | New York Brooklyn Queens Auto Insurance30 Year Mortgage Rates | Zillow Leads Review | Housing Outlook Forecast | MLS Toronto | US Market Crash | Toronto Housing Bubble | Best Cities | Mississauga Real Estate Forecast | Switch Insurance Company | Luxury Insurance for Porsche Audi Bentley BMW Jaguar Ferrari




One way to get the lowest car insurance rates is to use a telematics device. If your driving behavior is erratic and aggressive, the insurer may not offer you lower rates so bad drivers may not benefit at all.  However, for responsible drivers, Usage Based Insurance coverage is an option that could reduce your rates even further. If you’re older and not seeing lower rates, the UBI option proves your better driving habits and perhaps that you’re not on the road as much as a younger driver.  With data at hand, it will be tough for the insurance companies to actively discriminate against certain groups of consumers.

TW_Telematic-Infographic-Web600px-NA-2013-33019-v4.indd

 

Homebuyer’s Pains – The Long Commute to Homes They Can’t Afford

California Homebuyers – Who Understands their Pain?

A little empathy goes a long way. Our clients have hopes, needs, dreams and sometimes a frustrating reality. If you’re a realtor, mortgage agent, home renovator, home developer, building product supplier, or financial services provider, you probably need to get intimate with the pain of home buyers in LA, San Diego, New York, and San Francisco.

Understanding their real lives is a powerful way of connecting way with them online.

In this post, I’m going to help you reach into that emotional realm where they live to build a brand and content strategy that will appeal to them, and make them adore you.

It’s all about empathy (and a little humor). Owning a home is a still strong value in California culture even if fewer feel it’s possible. Donald Trump pointed out how few people own their own home. In Los Angeles, it’s the worst because of limited housing stock and wickedly high prices. This stress and feeling of helplessness is a key thing you can help them with. It has to be dealt with before any of them will buy a home. Trump struck a chord by identifying American’s severe frustrations, but his lack of humor didn’t win everyone over.




 

5 Key Sources of Frustration:

  1. feeling of falling behind – can’t buy a home the right time or place, have insufficient income, rising debt, and mounting costs they have little control over
  2. life/work balance out of whack and less enjoyment of anything – out of shape and feeling guilty they can’t see the kids or their spouse and family and friends enough
  3. tiredness, lack of sleep, and exhaustion from work and commuting – worries about health that joga and healthy food won’t fix
  4. can’t make enough money and are unable to build equity in their lives – no hope of owning a home and saving money
  5. can’t find a cheaper/better apartment so they can save money and time in order to one day buy a home and start a family

Californians are Pessimistic about Owning a Home

The latest report from Fannie Mae shows the Home Purchase Sentiment Index has dropped significantly across the nation. Even though prospective homebuyer’s incomes are up, it seems they’re more pessimistic than ever. Will the new President Elect Donal Trump come to the rescue as he’s suggested in his campaign promises? We’ll soon see.

Is this the right year to buy rental income property?  Find out more about the best investments in 2017 including investing in real estate.

Fannie Mae’s 2016 Home Purchase Sentiment Index (HPSI) decreased again in October by 1.1 percentage points to 81.7. Overall, the HPSI is down 1.5 points since this time last year.

  • Only 30% of Americans say now is a good time to buy a home
  • 15% say this is a great time to sell a home (up 4%)
  • Homebuyers expect mortgage rates to rise

The Theory: According to Fannie Mae, only 34% of California home buyers could afford to purchase the $465,280 median-priced home (in the first quarter of 2016, up from 30% in fourth-quarter of 2015). 41% of home buyers were able to purchase a $389,910 median-priced condo or townhome. An annual income of $77,575 was required to make a monthly payment of $1,939. But if mortgage rates and fuel prices rise, and the economy blips, those numbers will fall.

It’s a seller’s market, particularly in Los Angeles, San Diego, and San Francisco regions. The pessimism of buyers is reflected in their belief as well that home prices will rise and affordability drop, and their stressful commute to work will worsen.




Californians Fight Long Commutes

dogangerOnly Washington DC commuters suffer a longer daily commute, and now that Donald Trump is going to drain the swamp, LA will likely to rise to the top spot as the toughest commute in the country. L.A. has 6 of the 10 most packed roadways in the country and let’s not forget the heat and smog of driving very slowly on Los Angeles highways.

The pain of a long commute is a headache for a lot of homeowners in LA, SD and SF.  Not that new home development will solve the lengthy drives to work. LA may be in the market for more commuter trains.  Even California pets get a little edgy behind the wheel!

californiacommutingtime
Commuting Times rising dramatically in the last 3 years promises to grow much higher.

Where LA Area Workers Are Commuting to

This is such as cool animated gif created by the California Association of Realtors showing LA drivers daily commute.

Los-Angeles-Commute

To purchase fictitious median-priced homes, LA, San Diego, Central Valley or SF Bay Area workers are having to live further away and that’s clogging already congested highways. Does anyone want to drive in from Riverside, Sacramento, Oakland, San Bernardino, Anaheim, or Vista?  As this commuter infographic shows, LA drivers need to be innovative to get to work on time.

Commuter Infographic Los Angeles California
Commuting Infographic Courtesy of http://beagreencommuter.com/driving-in-los-angeles-infographic/

Here’s an exerpt from the LAist.com regarding perhaps the biggest pain homebuyers have in California: Commuting. And this was several years ago.

“While the numbers are slightly dated, rewinding back to 2006-2010 and 2011, they’re still relevant today. 11.9% of workers ages 16 and over in L.A. County suffered a commute of 60 minutes or more in 2011, which was slightly above the 8.1 national percentage. Another area where L.A. topped the national average was in commute time. The average commute time for county residents was 29.4 minutes in 2011, compared to the nation’s 25.5 minutes.”

Along with the deadly commute is perhaps frustration of needing to move away further from where they want to live. They may resent the relocation and have a negative attitude to their new community, and are more even more tired and stressed when they return home every evening.

In the Los Angeles housing forecast report, we discovered that the commute situation will probably worsen. Will improved highways ease the commuter nightmare? Will cheaper gas prices and electric cars make the pain go away? Will higher wages resolve the problem or make it worse?

Will the California government begin to open up more land to development and provide incentives for companies to move out of LA, San Diego and the Bay Area to ease the commuter problem? Likely not until the next elections bring forth Californian’s smoldering fury. LA and the Bay area have the same growing pains as any other major city, however mass transit actually contributes less as a solution.

roadcrewhumor
Road Crew Humor from https://johnlinkoblog.wordpress.com

Creating Empathy and Giving Compelling Solutions

You can gain a lot in terms of appearing informed about homebuyer’s situation and look to have viable solutions for easing their pain, including finding a home at a great price.  It’s important to remember that as a business person online, you are your content. If it’s irrelevant, unresponsive to their pain, and doesn’t appear to offer the solution, they will not only leave, they’ll consider you irrelevant.

10 Vital Topics you should explore on your website:

  1. how to ease commuting stress
  2. how to lower financing costs and find starter homes to build their equity
  3. where to buy a better commuting vehicle
  4. how to find a new job farther away from the city
  5. how to find a great community in rural areas for their kids
  6. how to talk their bosses into telecommuting for at least one day a week
  7. mention local elected officials and what they’re actually doing to ease homebuyers purchasing and traffic congestion and commuting pain
  8. showing homeowners how they can sell their homes for fortunes and find a better life elsewhere
  9. how finding a home in your community with precisely the key features that will make their lives better
  10. how to relax and enjoy their homelife in a distant community
teslamodels
Is the Tesla Model S the most comfortable commuter car for your LA commute?

By building content that relates specifically to homebuyer’s pains, and demonstrates concern and solutions, they’ll see you as the most credible professional, someone they will look forward to hearing and doing business with.

Californian’s have plenty of other dreams, pains and frustrations, and perhaps we can research them all and give them some comfort. Researching and writing good content that ranks well in Google and converts like crazy isn’t easy. You’ll need some help!

Read more on how to create impact, why high traffic is better, use powerful custom real estate video, why SEO is still the best value in digital marketing, and on why now is the right time to sell a home. Read up on the key Luxury Realtor Skills.

 

Related posts: US Real Estate | Los Angeles Housing Market | Toronto Housing Market | San Diego Housing Market | Housing Forecast NY |  Real Estate Agents | Future of Real Estate | Toronto Real Estate SEO | Vancouver Real Estate SEO | Vancouver Condos | Toronto Condos | Vancouver Housing Forecast | Affordable Leads | Digital Marketing for Realtors | Realtor Branding | Bidding Wars | LA Real Estate SEO | Realtor Growth Hacks | Realtors Benefits | Home Search | Rental Income Property | Mortgage Rates | Car Insurance Los Angeles | Bay Area Apartment Rental | Best Investment Opportunities 2017

Gord Collins Los Angeles Real Estate Marketing —  I generate leads for realtors in Los Angeles, Anaheim, Beverly Hills, Malibu, San Diego, San Francisco, San Jose, Fresno, Santa Clara, Sacramento, Mountainview, Palo Alto, Sunnyvale, Riverside, Rancho Cucamonga, Costa Mesa, Thousand Oaks, Simi Valley, Oceanside, Long Beach, Huntington Beach, Carlsbad, Santa Clarita, Temecula, Stockton, Palm Springs, Chula Vista, Escondido, Santa Monica, and more. Find a LA Real Estate Agent who actually wants to work with you.

New York Auto Insurance

New York Car Insurance Quotes

To find the best car insurance quotes you need to search. The odds of getting the lowest quote on your auto insurance is not likely from one or two insurance companies or brokers. Since there are a lot of companies selling car insurance in New York state, it’s vital to get competitive quotes from as broad an array of insurers as possible. Be True to You and find the best rates.

Auto, Truck and Motorcycle insurance shouldn’t be so expensive. It could be very inexpensive if you’re determined to keep searching and get quotes from all of the US insurance companies and brokers online. Don’t discount small insurance companies who may actually offer the lowest insurance rates due to how they limit their customer base and better tailor their automobile insurance products to specific customers in NYC, Queens, Brooklyn, Harlem, Yonkers, Rochester, Albany, Buffalo, Syracuse, Binghamton, Schenectady, Huntington, Utica and White Plains.

Your Quest — To Get The Lowest Car Insurance



What Does $10,000 Look Like in NY?

Ten thousand dollars
Save on Your Car Insurance

$10,000 looks good in NYC, Boston, Chicago, Denver or Los Angeles. That’s how much you could save over 6 years. You could buy new tires, take a trip to Costa Rica or Switzerland and have enough to buy a 60 inch LED 4K TV.

How long have you been with your tired old insurance company? A long time right? That’s how car and truck owners overpay on insurance. You need to shop because that’s the only pressure they face to offer you the best deal. And you want bigger savings than $10 a month. You can save a lot more. I got an auto quote that had a range of $2000 between highest and lowest. Maybe your company is the one that has the highest. Are you using any of the big auto insurance companies such as Geico, Progressive, Nationwide, Farmers, Allstate or State Farm? Get a better quote and keep your money.

Tips to Save on Car Insurance

I’ve outlined how you can save on car insurance premiums, and here on this page New York auto owners can find insurance companies, brokerages, and insurance agencies offering better rates to new customers. So come on, think positive and give these companies a chance to show what kind of super low rate auto insurance policy they can write on your vehicle and how you can drop or lower the premiums.

What to Look for When Getting Auto Insurance Quotes

tipstosavemoneyIt’s tough to know when you’re getting a better quote on your New York auto policy when you’re not sure what it covers. There’s things you can save on and things you can improve on. Ask about accident forgiveness, rental vehicle coverage, rental replacement coverage, combining your home/contents insurance, usage-based coverage, higher deductible for collision damage, and getting lower rates for installing winter snow tires.

Should outright cancel your collision coverage? Tough decision, however it may save you some cash, or it might not save you much. Get quotes either way and see what the difference is. If the difference with no collision coverage on your auto policy is minimal then don’t do it. It’s better to get your old beater repaired if you smack into someone on icy roads. If you need your vehicle to get to work, then by all means, keep your collision coverage deductible.

Accidents do happen, especially in New York City, Los Angeles, Phoenix, Boston, Chicago, Miami, Houston or San Francisco.  Too many trucks, cars, and motorcycles on the roads and it won’t be getting less congested.

Being properly insured is an important matter. Check out this infographic for info on liability coverage:

Check out insurance liability coverage on your policy. Infographic courtesy of
Check out insurance liability coverage on your policy. Infographic courtesy of Liabilityinsurance.org




New York Auto Insurance Agents

Allstate Insurance Agent: Kevin Schaefer
49 Nassau St Fl 2,
New York, NY 10038, United States
212-267-7601

Allstate Insurance Agent: Elizabeth Nunez-Troy
1001 Columbus Ave,
New York, NY 10025, USA
212-666-3000

Allstate Insurance Agnet: James Heins
302 E 19th St,
New York, NY 10003, USA
212-475-1103

Auto Insurance RatesResidential Solar Shingle Systems | Home Mortgage Rates | Zillow Leads |  Toronto Real Estate SEO  Real Estate Leads| Real Estate Marketing | Housing Forecast | Prospecting Strategy | MLS | House Market Evaluation | Homes for Sale | Toronto Condos New Construction

I welcome all inquiries from businesses in Los Angeles, Phoenix, Denver, Seattle, Chicago, Boston, New York, Dallas, Houston, San Antonio, Austin, St Louis, Minneapolis, Green Bay, Charlotte, Tampa, Miami, Orlando, Toronto, Vancouver, Montreal, Ottawa, Calgary, Kelowna, Mississauga, Anaheim, Beverly Hills, Malibu, San Diego, San Francisco, San Jose, Sacramento, Mountainview, Palo Alto, Portland, Washington, Atlanta, Irvine, Nashville, Salt Lake City, Riverside, Glendale, Oceanside, Long Beach, Huntington Beach, Carlsbad, Santa Clarita, Redmond, Kansas City, St Louis, Stockton, Scottsdale, Palm Springs, Indianapolis, Columbus, Colorado Springs, Fort Worth, Chula Vista, Escondido, and Honolulu.