- Consumers seeking more control on auto insurance premiums have new options
- Usage based insurance provides discounts based on driving patterns and behavior
- Insurance agents can help tailor coverage to save money
The old-school way to save on auto insurance was to bundle auto, home and life. But in today’s environment, consumers are looking for even more effective ways to control their budget and save money. While the bundling approach is still a smart play, there’s a new option to consider—usage-based insurance.
According to a recent J.D. Power and Cambridge Mobile Telematics survey, 57% of consumers think their miles driven will remain lower for a significant period of time, and they’re nearly three times more likely to consider usage-based insurance as a result. As people are looking for ways to exercise more control over their monthly budgets, usage-based insurance is going to become increasingly popular.
Should I consider usage-based insurance?
Nationwide has options to leverage technology through our usage based insurance programs, SmartMiles® and SmartRide®, to help customers save money right now when they need it most and find the right plan that matches their driving habits into the future. Drivers can save up to 40% in Nationwide’s SmartRide program, and the SmartMiles program gives low-mileage drivers more control over their insurance rates. And since you may be driving fewer miles right now, there is potential for even greater savings.
- SmartRide® gives personalized feedback to help you make safer driving decisions. Customers earn an instant 10% discount when they sign up. Then, driving trends determine your total discount based on four factors: miles driven, hard braking, fast acceleration and nighttime driving. And, the safer you drive, the higher the discount you receive, up to 40%.
- SmartMiles® is car insurance for lower-mileage drivers. It’s the same great coverage as a traditional Nationwide auto policy, but with a flexible monthly rate that’s based on how many miles you actually drive. Plus, customers can earn a discount of up to 10% for safe driving.
“There may be opportunities to reduce your insurance budget, depending on your driving habits,” said Teresa Scharn, Associate Vice President of Personal Lines Product Development for Nationwide. “The first step is reaching out to your insurance agent to discuss your options.”
Customization will override “one-policy-fits-all”
The days of the “one-policy-fits-all” approach to auto insurance are over, as consumer needs change, they are looking for carriers who can help tailor auto insurance coverage based on the unique needs of all the drivers in their household.Consider this fictitious household—the Smart family, which includes three types of drivers shopping for insurance. One of the Smart parents commutes to work daily, averaging 60 miles each day. The other Smart parent prides themselves on safe driving, mostly running errands and trips not far from home. Their teenage child has been driving for a year, mostly to school and a local part-time job—the child will be leaving for college next year and not driving as frequently.
Smart family insurance:
The Smart teenager is a good candidate for SmartMiles, a mileage-based solution with a flexible monthly rate based on miles driven. The Smart parent with safe driving habits is an ideal candidate for SmartRide, which includes a discount based on safe driving as well as real-time coaching and feedback. The Smart parent commuting longer distances to work is well suited for a traditional standard auto policy.
“A family can leverage each of these programs, or mix-and-match what is best suited to meet their individual needs,” Scharn explained. “Nationwide can provide this range of options on the same policy, ask your agent to help you understand which option is best for you.”
You can still save money by bundling multiple policies
Discounts are often available for bundling multiple policies with the same insurance carrier. Specific savings depend on state, policy selections and rating factors, but Nationwide customers can generally save up to 20% by bundling home and auto policies—compared to a stand-alone price for each policy. These savings can definitely add up after finding the right coverage options to protect all of your family’s assets.
iSmartRide: Availability varies; program criteria differ in California. Stated discounts are approximations. Discounts do not apply to all coverage elements; actual savings vary by state, coverage selections, rating factors and policy changes. The enrollment discount applies during data collection; the final discount is calculated according to driving behavior and could be zero. The final discount applies at the next policy renewal and is subject to change based on actuarial support at subsequent renewals or with changes in drivers or vehicles on the policy.
iiSmartMiles: Availability varies. SmartMiles includes a base premium plus a variable premium based on the coverages in force and the days and miles driven.
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