Emily Clarke

How Safe Driving Can Decrease Your Car Insurance Premium

Car insurance is one of those things that no one likes to pay, but it's necessary if you want to hit the road! Depending on where you live, premiums can be surprisingly high, encouraging millions to look for ways they can lower their bill. Luckily, many providers offer opportunities to reduce premium payments.

Safe Driving Habits

Next time you get a confirmation email from your online State Farm bill payment, you might see an ad or offer about a dedicated safe driving app. Don't ignore it! The app could be the ticket to helping you save on your monthly premiums!

Insurance companies use many factors to determine your premium rates. Unfortunately, many underwriting policies use blanket data to determine coverage risks. For example, geographic location and age play a big part in the process. Insurance providers will look at statistics covering your demographics and set your rate accordingly.

From the outside looking in, that's not a super fair process because it doesn't consider your unique driving habits. It relies on demographic data, which doesn't always apply to you as an individual.

Luckily, providers are changing their approach and offering more opportunities to lower your bill. One example is a safe driving app.

How Does a Safe Driving App Work?

The concept is simple: You download the app on your smartphone, allow it to track your location and other forms of data, and go about your daily routine! The app works in the background to measure your driving habits and send them to the insurance provider for analysis. If the provider determines that you have good driving habits, they may lower your premiums!

Back in the day, providers relied on small dongles you had to hook up to your car. However, things are a lot more streamlined. Everything happens through the same device you use to make your monthly online State Farm bill payment.

Doing What You Can to Manage Insurance Premiums

Using a safe driving app from your insurance provider is optional, but you should consider it. Anything that lowers your monthly premium is worth trying!

Author Resource:-

Emily Clarke writes about cash advances, overdraft protection & finance apps. You can find her thoughts at money transfer app blog.