Usage-based car insurance in California

When purchasing car insurance in California it's not unusual to get higher rates than average. That's because the state is known for its high number of cars and multiple uninsured motorists. Things can get especially tricky if you happen to live in an agglomerated area like Los Angeles or San Francisco, which are famous for common car crashes and thefts. But what if you actually don't drive your car that often and only use it occasionally? It doesn't make any sense paying a lot for car insurance in California while keeping your car in the garage or the sideway most of the time. If that's exactly your situation consider the benefits delivered by usage-based car insurance in California, which may be convenient for some drivers and offensive to others. Because we all know how Californians are sensitive about their privacy, and with usage-based car insurance that's exactly what you have to sacrifice.

The concept of usage based coverage is rather simple and is a combination of an old insurance approach with new technologies. Back in the day, the majority of health insurance plans employed the usage-based principle: the premiums were determined by the number of times you went to the doctor. Naturally, if you didn't use the doctor's services for a specific period of time the insurance was cheaper, and when you had more doctor visits the premiums were high. Today it's hard to find such policies because most providers offer managed care plans. However, this concept seems to gain new ground on the car insurance territory. However, there's one small problem: how do you determine the usage of a car? Will the insurers rely on customer's evidence and car meter readings? That's where the new technology part starts.

It's very common to see GPS modules in cars these days, with new cars being fitted with those right at the factory while older cars get those things installed additionally at a very low price. Having a tracking device is very convenient because it can help you get to places you would otherwise have to look for on the map or ask around. However, these modules can also be used to gather data on your car usage and driving patterns. And that's exactly what usage-based coverage offers: it gets reading from the GPS module of the car and provides a statistical analysis on car usage. Besides the overall mileage this also includes the acceleration/breaking patterns and average speed of the car, which helps determine how risky your driving style is. Based on this data you will be given car insurance rates that correspond to your individual car usage and driving patters, without being influenced by various demographic variables such as age, sex, education and others.

For many people the sole idea of their movements being monitored and analyzed is an invasion of the holiest of all - their privacy. Conspiracy theorists and privacy advocates see the work of the Big Brother in this new insurance type and will never agree to even consider it. But what benefits do average people get with usage-based car insurance in California?

The new policy type will certainly benefit drivers who use their cars on rare occasion and tend to be law-abiding in terms of their driving behavior. This policy type can effectively cut insurance costs for good drivers who employ a defensive driving style on a regular basis as well. However, those who use their cars a lot and aren't very sensitive about breaking the speed limits or changing lines all the time will find usage-based coverage inconvenient as it will eventually deliver higher rates for such drivers. So the final word is on you, depending on the group of drivers you belong to and your personal feelings about your privacy being violated to an extent.

How to Buy Car Insurance in California Online »

If you live in the state of California and plan on operating a vehicle, it is required that you carry automobile insurance. There are a lot of car insurance companies around, both online and local. This may make it seem overwhelming to shop around. However, this is the best way to save money and is worth the effort. There are many car insurance companies online, and there are many websites that will find you multiple quotes with a single click of a button!

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