Car Electronics

Car Apps for Cheaper Insurance

Car apps can actually result to cheaper auto insurance. Anything that will make a car less risky to insure adds up to the possibility of a decreased insurance cost. The insurance business relies heavily on the presumption and the possibility of risk thus the driving ability of the person is also a critical issue in determining insurance premium.

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The Driver’s Road Worthiness

The cost of car insurance, contrary to common belief, does not rely solely on the car and its condition. The driver’s worth has as much to do with increasing of the decreasing the amount. It would be highly ideal therefore for owner-drivers to keep themselves in shape to ensure that they will not be the reason for high insurance premiums.

It is a must that drivers have a valid driver’s license. License holders are expected to have passed the necessary tests such as the Theory Test in UK  which at present requires applicants to pass a multiple-choice test and hazard perception test before being eligible to take a practical test. These tests are designed to determine if a driver has grasped enough of the driving theory to be applied to practical use. Once a license has been issued, it would be up to the license holder to maintain a good driving record which is highly beneficial to getting a lower premium for car insurance.

The Car’s Road Worthiness

Generally speaking, the higher the market value of the car, the higher the insurance premium cost. This is obviously because of the higher cost that it would entail to replace the car if it stolen or repaired if it is damaged. It may be a lot cheaper to insure an older car but the coverage may not be enough to protect the owner from liability in damaging an expensive car.

Car apps can help lower the cost of car insurance premiums. Some insurance companies entertain the option to lower insurance premiums if there is data to support the claim that drivers are practicing safe driving. Through an app that uses GPS and mobile data connection to send such information to the insurance company, insurance premiums can be adjusted. This is what is referred to as telematics.

Every time the app is run, each driving journey is rated. Essentially, there is a scoring system for this that apparently helps drivers improve their driving style as they to know how they rate. It would seem like car apps for cheaper insurance is indeed possible.