What Is Usage-Based Car Insurance?

Usage-based car insurance is known by a number of different names, including:

• Pay-as-you-drive (PAYD) insurance
• Pay-per-mile insurance
• Behavior-based insurance
• Telematics

These forms of usage-based car insurance are ones where your insurer calculates your insurance premium rates based on your car usage and how you actually drive your car rather than the way they think you'll drive your car based on their statistical data used during the underwriting process.

Traditionally, car insurance premium rates are determined by using lots of data that are meant to tell the insurance company what type of risk you represent to them.  This is done by trying to figure out how other drivers displaying your characteristics and driving habits are most likely to drive. There are also lots of other factors used to determine what level of risk you represent to your insurer. These may include:

• Age
• Gender
• Zip code
• Occupation
• Marital status
• Driving record
• Credit rating
• and other factors, depending on the insurer

How Usage-Based Car Insurance is Different

With usage-based car insurance, your policy premiums are based on how and how much you actually drive your car. As a safe driver, you should look forward to saving some money. Conversely, as a riskier driver, your premiums will be higher than your peers who are considered safer.

This type of insurance is relatively new and has been fairly slow to catch on with the public. One reason for this is the fact that people may feel it an invasion of privacy to allow their insurance company to track their driving.

 

 Different Types of Usage-Based Coverage

Some usage-based policies figure premium costs strictly on the number of miles you drive during the policy period. Even as a risky driver, you won't see a premium penalty unless a claim is filed against you.

Other policies are behavior based, meaning premium rates are determined by how and when you drive. Using a mobile app that works in conjunction with your smart phone, data can be sent to your insurer to tell them not only where and how many miles you drive, but also any risky actions you take. These may include:

• Talking on your phone while driving
• Fast accelerations
• Hard braking
• Speeding

As an alternative to the mobile app, some companies use a dongle that plugs into your car's on-board diagnostics port.

Not all insurers offer usage-based car insurance, but some of the best, such as Progressive, do.

Renter's Insurance: How Much Is My Stuff Worth?

If you're out there shopping for a Greensboro Renters Insurance policy, you're to be commended. You're in the minority in an area where making the right decision can have a huge financial impact on your life.

Homeowner's vs. Renter's Insurance

According to the Insurance Information Institute (III), approximately 97% of homeowners in the U.S. carry homeowner's insurance while less than 40% of renters carry renter's insurance. There may be several reasons that so many renters remain without coverage:

1. Some may feel that the personal property they have doesn't have a high enough value to warrant insuring it.
2. Some may feel the cost of renter's insurance is too high to justify this ongoing expense.
3. Some may not realize the benefits that come with a renter's insurance policy.

Is It Worth It?

Bringing clarity to the three above-listed concerns may be just what you need to justify your taking out Greensboro Renters Insurance coverage.

As far as total value of your possessions goes, you likely have much more in value than you think. Once you factor in all of your clothing, all of your furniture, all of your electronics, your books, dishes, kitchenware, etc., you likely have thousands more than you've considered. A typical renters insurance policy with a personal possessions limit of $30,000 would probably cover you adequately, but once you start adding everything up you might even want more protection.

Cost for a typical renters insurance policy is surprisingly low. According to the III, here in North Carolina the average cost for renter's insurance runs about $157 per year, which is only about $13 a month.

Considering what you get for that $13 per month premium payment is also to be seriously taken into account. Not only are your personal possessions covered against numerous threats such as fire, smoke, explosion, theft and other perils, you also have significant liability protection. This means if someone becomes injured while on your rental property and you end up getting sued for damages or medical costs, you have a certain amount of liability coverage. Limits for liability coverage are typically around $100,000, and this can go toward court costs, legal fees and any judgments you face.

For a few dollars more, you can increase policy limits by quite a bit. This may be the lowest cost, highest value insurance you can buy. One time use could pay back a lifetime of premium dollars!

Life Insurance Medical Exam: What to Expect

A life insurance medical exam is a way for your proposed life insurance provider to confirm the information you supplied to them on your life insurance application and to delve a little further into your medical history. A life insurance medical exam is typically conducted by a qualified medical professional such as a nurse, and need not be done at a hospital or clinic. In many cases, the exam will take place at your home.

Two Stages

There are usually two parts to a life insurance medical exam:

1. A verbal question and answer period with the examiner.
2. Standard measurements such as height, weight, blood pressure and heart rate (pulse). You will also likely be asked to give a blood and urine sample. The blood sample is to check things such as cholesterol, blood sugar, protein and HIV. The urine sample is to check for protein, glucose, HIV, creatinine and drug use.

The information derived from this two-stage medical examination will be compiled with the information from your insurance application and the statistical longevity information used by the insurer. All this will then be used to determine whether or not the insurer feels that you're qualified to be accepted as one of their insureds and, if so, your annual policy premium rate.

What's the Time Factor for the Test?

The examiner who comes to your location to perform your life insurance medical exam will bring everything they need to complete the session. The verbal medical history portion should take about twenty minutes, give or take, and obtaining the urine and blood samples should take just a few minutes more.

Why a Medical Exam is Required

There are several reasons insurers often require medical exams be undertaken by their prospective insureds. They include:

• As a verification for the information originally submitted on your application
• To get a full medical history. The exam questions go deeper into not only your personal medical history but also into your family medical history. If, from the information gathered, it's determined that you may statistically die earlier in life, higher premiums will have to be collected during the early years of the policy. Conversely, if it's estimated you'll live longer, early year premium payments will likely be lower.
• The exam may help uncover any underlying medical conditions of which you're not aware or that you may have not declared. It may also uncover any drug or nicotine use.