PAYD (Pay as You Drive) whit Hammer Insurance Rialto. PAYD is a program that lets you reduce the cost of premium fee based on vehicle usage. With less driving frequency or recklessness, you are eligible for discounts. Depending on the insurer that provides the coverage, the discount can reach up to 30% reduction of the actual insurance cost.
Hammer insurance Rialto provide a device by mail for you to install on your vehicle to do the monitoring process. PAYD is not currently a mainstream practice; there are probably less than 20 insurers providing the programs, very tiny number compared to the entire existing auto insurers. However, this program is currently rocketing in popularity, so, we expect the number will grow quite rapidly in the next few years.
Hammer Insurance Rialto telematics device
A telematics device (for example GPS-enabled monitoring unit) can measure some different variables concerning drivers’ behaviors on the road. All reports will be sent back to insurer’s central control for reviews. There are some important keys mostly monitored as outlined below:
- Time driving: insurance companies use statistics to determine the riskiest hours of the day for driving. Apparently, the peak hours for accidents are between midnight and 04:00 AM. If you drive during those peak hours, the monitoring device will record and report the activity to the insurer. If you don’t usually drive during peak hours, you have bigger chance to get discounts.
- Miles drove: the distance that you travel every day take into accounts some factors such as your home address and worksite. The longer the distance, the more miles you drive. Conventionally, insurers will ask you to produce the data at the end of the month or every payment cycle. With PAYD program, the mileage is digitally measured. A basic formula is that shorter distance means less likelihood of road accidents.
- Vigorous braking: there is no exact accurate way to measure hard braking, but PAYD monitoring device constantly measures speed. The device will consider any rapid decrease in speed hard braking. In most cases, a decrease in the speed of up to 7 miles per hour in a second is a really hard braking. More frequent hard braking indicates less cautious driving behavior.
No increase premium fees at Hammer Insurance Rialto
While some insurers convince you that PAYD will not increase the premium fee, constant monitoring may notice some bad driving behaviors such as mobile phone usage or inappropriate speeding. Please put in mind that drivers’ behaviors always have ramifications for the existing coverage policies; it may reduce the premium bill, but it can also increase the cost based on the reports.