The safer you drive, the more you pay
29 Feb 2008
BOSTON - The issue "Insurance Telematics", above all "Pay-As-You-Drive" is getting even more discussed. The insurance rates are calculated by the facts how often you drive which distance without having an accident.
First of all the new system "Pay-As-You-Drive" seems to be a quite good and fair strategy to lower your costs, because if you drive not much, you will pay less. It is said that it is not important who you are but how you drive. It is discussed whether the insurers should be informed about age, income or marital status to calculate every rate individually. There was an intersting case in the US: The rate of an 27-year-old woman who never had an accident increased on average of 5.2 percent this year. In contrast the rate of an older married couple decreased by nearly 14 percent, although they had accidents nearly every three years.
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