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Would You Consider Usage Based Insurance?

Insurance companies are always in competition with each other when it comes to offering the best rates. In recent times, insurance companies like Desjardins and The Co-operators have been offering usage based insurance programs to help drivers reduce their insurance premiums. 

The idea is that the insurance company is in essence, sent data about how you drive. Factors like your average speed, how you stop, reaction time, are taken into consideration and if you are “good driver”, you can receive a discount on your insurance. 

More and more people are willing to consider usage based insurance, according to a recent survey conducted by Towers Watson & Co., which revealed that almost 80% of drivers are open to purchasing a usage based policy, especially if insurers guarantee their rates are not going to increase. 

However, nearly half of consumers are still hesitant about the risk of potential higher premiums that could result from usage-based insurance. Another concern is over privacy. Survey respondents indicated concerns that their insurance companies would be receiving data that would allow them to monitor their driving destinations, but there seemed to be a decline in the number of people that are concerned with privacy concerns compared to the past year and a half. 

Another survey, conducted by LexisNexis Risk Solutions revealed that 68% of consumers worried about their insurance companies obtaining too much information. This percentage is less compared to 2013. As consumers are becoming more familiar with what usage based insurance is, they are more likely to perceive it as useful and relevant. 

As a drivers, should we be concerned with insurance companies using this data against us? Can this data possibly be used to explain how a car accident happened or to track what speed we were driving when an accident occurred? How specific is the data that is recorded? Would this data be admissible as evidence, or be used to prove liability in personal injury cases? These are some questions that people might be asking themselves. For now, what we know is that usage based insurance is meant to offer drivers discounts for driving well. 

If you or someone you know is a victim of a car accident and has sustained any type of injuries, you should consider contacting an experienced personal injury lawyer right away. 

At the law firm of Paciocco & Mellow, we have represented many clients who have sustained serious injuries as a result of car accidents, slip and fall accidents, pedestrian accidents, bicycle accidents and other types of personal injuries. We can help clients with finding the right rehabilitation clinics and help them with their recovery. 

People may not be aware of their rights or obligations and may feel overwhelmed about the legal process. Personal injury litigation is complex and Paciocco & Mellow is a Windsor Personal Injury Firm that has successfully represented many injured persons.  

The law firm of Paciocco & Mellow aims to help provide you with Peace of Mind at a Difficult Time. Contact the Windsor personal injury lawyers at Paciocco & Mellow at (519) 915-SORE (7673). We can provide you with a free, no obligation initial consultation.