I save £ 900 a yr on my auto insurance as a result of I get a reduction if I drive fewer miles – and you could possibly do it to … – The Solar
SAVVY saver Denisha Knole managed to cut the price she paid for her car insurance by as much as £ 900 a year.
The 37-year-old nurse from London equips her car with a telematics "black box" to keep track of her mileage – and the fewer kilometers she drives, the lower her bill.
Denisha managed to cut £ 900 a year from her auto insurancePhoto credit: BYMILES
Denisha signed up with By Miles last year to save money on her car insurance.
The mother of two previously paid a traditional insurer £ 1,764 a year.
But with By Miles they estimated her bill at £ 872.31 for fully comprehensive insurance – as long as she only drove about 3,000 miles a year.
That means she managed to save £ 891.69.
Your car black box tracks and monitors how far it drives and these driving habits determine how much it has to pay.
Typically, other black box policies allow safer and more responsible drivers to be rewarded for their behavior.
The risk with this, however, is that if you drive dangerously, your bill will go up.
There are around 450,000 telematics policies on the market in the UK. First launched in 2010, they can typically save £ 200 a year for drivers – especially younger ones – according to MoneySuperMarket.
At By Miles, however, your award is also calculated based on the miles you have driven.
By Miles isn't the only insurer on the market that charges by miles; competitor JURNY has a similar policy.
"When I found ByMiles, I thought, what, have I been ripped off before?" Denisha told The Sun.
"I pay for the miles I drive and that's the game changer. I would definitely recommend switching.
"I'm going on vacation to Barbados next year, so what I've saved gives me a few cents more to invest."
Drivers must prepay for an annual policy of £ 150 or more and will be billed for miles driven at the end of each month.
However, this will vary between customers when requesting a quote.
The device itself is tiny, it looks like a small USB stick.
Users can also keep track of everything they do with a free app.
Denisha wants to commit to driving less because it's better for the environment – and it helps her save money.
She said, “When the weather was nice, I told the children that we would walk to school instead of driving.
“Monitoring my miles in the app can make me aware of my trip as it lists everything – if it's an easy trip I'd say I know it's only that distance to get here and it costs "so much, I'll just go instead."
That means she pays an average of £ 20 a month for her auto insurance.
But if she has to keep driving, her bills go up.
Telematics insurance explained
Telematics insurance usually requires the installation of a device in the vehicle, commonly known as a “black box”.
You can also get USB-like plug-in options (often referred to as plug-and-drive) that the driver can customize themselves like with the By Miles policies, or you can get smartphone sync data that will track your phone instead while you're in the car.
Regardless, drivers are monitored for things like the time of day you may be driving, the distance, speed, or even the type of roads the car is being driven on.
You need to watch out for additional costs, such as: B. Reinstallation when changing vehicles, moving fees and fees for damage to the technology.
Drivers should inform themselves before taking out a new policy.
A GoCompare spokesperson said, “While telematics insurance may offer less experienced drivers a more competitive way to get their auto insurance, with driving behavior monitored by telematics customers' insurers, some may perceive this as a disadvantage of the offer.
"It may also be possible for premiums to rise if customers reach a standard that may not be acceptable to the insurer. This should also be taken into account."
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