Published in July 28, 2021
Usage-based car insurance is personalised insurance that is solely based on how you drive. Premiums are calculated by how much of a risk you are to insure. If you’re a new driver, insurance companies consider your likelihood of getting in an accident is larger than experienced drivers.
Nowadays, there are some companies in Australia that base your premium on how you drive. This is what usage-based insurance is. The safer you drive, the lower your premiums will be. This new form of insurance saves you money over the traditional calculation of premiums.
Usage-based insurance is a personalised policy that is based on how you drive. Companies use telematics to track your driving style and calculate your premium based on your safety. The concept behind it is that if you’re driving safely or hardly driving, then you’re less likely to get in an accident.
It’s an awesome and helpful product that’s still relatively new. Therefore, it will be difficult finding insurers in Australia who offer this specific policy.
Usage-based insurance companies have a few ways to monitor your driving style.
Your insurance provider will most likely have a mobile app that would track how often you drive. The app will have a history of all your trips and locations. This can help the provider recognise driving in risky times or areas, which can affect your premium.
This also allows your insurer to check any risky actions such as mobile use, sudden braking or speeding.
Usage-based insurance companies are still rare in Australia. However, we managed to find a 100% Aussie company that’s here to help you save!
UbiCar is a usage-based Australian company that uses telematics to track your driving style to give you a driving score that calculates your premium. Based in Manly, NSW, UbiCar is available to all licensed drivers living in Australia. Visit UbiCar or download their app to find out more.
While we at Tippla will always do our best to provide you with the information you need to financially thrive, it’s important to note that we’re not debt counsellors, nor do we provide financial advice. Be sure to speak to your financial services professional before making any decisions.
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