3 Ways Technology Can Help You Save on Auto Insurance

Posted on: 24 January 2017

Purchasing auto insurance can be a major hassle for some drivers. The average annual cost of car insurance is $907.38. Factors such as the driver's age, the age of the car being driven, driving history, and location can play roles in how expensive or inexpensive auto insurance is. Saving on insurance is a goal for many drivers, but many are unsure about how to do so. Luckily, technology can actually help drivers save. Here are three ways technology can help drivers save on auto insurance. 

Easy Comparison Shopping

Technology has made it easier than ever to comparison shop and save on auto insurance. Comparison shopping simply involves getting quotes from various companies and figuring out which one works the best and has the best rates. The Internet and various apps have revolutionized comparison shopping. Instead of calling various auto-insurance companies to get quotes, drivers can simply do all of the work online with just a few clicks. The average possible savings for drivers who comparison shop is around 47 percent. Utilizing technology for comparison shopping can save drivers hundreds of dollars.

Billing Discounts

Technology has also made it easier to pay for car insurance. Drivers no longer need to send cash or checks to their insurance companies. Payments can be processed online and even debited straight from a bank account. Some car-insurance companies even offer discounts for utilizing this technology. Using online billing and e-mail statements can lead to a reduction in a driver's insurance bill. Many auto-insurance companies also offer discounts for automatic payments and for paying the premium in full instead of monthly. This can actually save drivers anywhere from 5 to 11 percent on their premium. 

Telematics

Telematics are devices that are placed within a car in order to send information about the driver's driving habits. They are essentially there to determine whether or not the driver is driving safely. Some insurance companies offer discounts for having these devices inside a vehicle. Some companies offer savings of up to 30 percent for having one of these devices in the car, but the average savings is usually much lower than that. As telematic technology improves and more data is gathered, it's likely that auto-insurance companies will offer larger discounts for having these devices. Drivers who have this technology available to them should consider taking advantage of it, even if it offers only a small discount currently.

Technology has made the search for auto insurance an easier task for many drivers. Technology makes it easier to comparison shop and to get things such as billing discounts for going paperless. Telematics are also a new technology that can lead to some savings now and possibly more in the future. 

Talk to companies such as Ahlquist Insurance to learn more.

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