According to recent research, more than one-in-three insured drivers would considering switching to usage-based car insurance.
But can it really offer you savings between five and 30 percent as some analysts have claimed? The survey, which was conducted by Lynx Research, at the very least proves that pay-as-you-drive insurance is gaining interest despite privacy concerns and potentially hidden costs. According to the National Association of Insurance Commissioners, 20 percent of all insurance plans will incorporate pay-as-you-drive features within the next five years.
SEE ALSO: What is Usage-Based Car Insurance?
Though usage-based insurance could provide more accurate rates for drivers by taking in current driver habits into account, the up-front cost along with the cost for transmitting the driving data adds up. Still, surveyed drivers would switch if it saved them up to 10 percent a month. Unfortunately, there’s a lot of fine print that goes along with usage-based car insurance premiums, and in the end, it’s difficult to enjoy a discount.
[Source: Detroit News]