Esurance is expanding its usage-based insurance (UBI) program to Arkansas and is offering both UBI and auto insurance. Esurance has the backing and support of Allstate Corporation (NYSE: ALL), the largest public personal lines insurer in the U.S.
Esurance is an auto insurance company that has 15 offices in the United States consisting of about 2,000 associates. It now provides the citizens of Arkansas, insurance related facilities including UBI measures and several other popular elements involved with automobile insurance.
Esurance’s latest offer is an immediate 5-percent discount on the preliminary six-month policy term, with the installation of a telematic device in the onboard diagnostic port (OBD). This helps in the collection, aggregation and storage of pertinent data that can be digested locally, or post-processed remotely.
This will influence insurers to convert driving data into industry valid metrics, which in turn will be used in the development of new insurance products and services for consumers. In simpler terms, the automotive telematics platform will offer enhanced data services and provide the connectivity for additional telematics features.
The program will gather driving data from the self installed device in the vehicle, and if drivers pay attention to their driving habits, they can reduce their insurance rates.
Policy holders can avail a further 30-percent discount based on their driving habits, road surface variants and the time when they are driving. The company also plans to add more concessions for new customers.
Added discounts are available to customers with on-time full payment record including maintenance of decent grades. There are also more price reduction offers for customers buying home owner’s insurance.
Jon Inquimboy, UBI product manager at Esurance, said in an interview with Telematics USA that they were working to fulfill the customers’ need through the utilization of the UBI services of the company for obtaining full auto insurance support. Safe drivers are the popular Esurance customers, who are in favor of all modes of insurance-based benefits.
With this concept, motor vehicle drivers would be able to analyze that their driving ability affects the insurance premium rate. They can look at the driving statistics and visualize the facts of becoming a better driver.
The client-oriented manifestations reflect the company’s aspirations to develop better drivers by providing improvised insurance services.
Inquimboy added that the people of Arkansas can benefit from their multitude proposals offering wayside service, reminder prompts for on-date automobile servicing and answering teenager driving queries. They are also offering other services that consist of counseling for insurance needs, comparing with other resources for appropriate procedural understanding, inventive mobile-based applications, teen driving, providing comparison quotes, and most of all providing a 24-hour customer services facility.
The requirement for UBI programs have been on the rise as auto industry insurers search for new methods to improve pricing sophistication, control claim costs, augment profitability and differentiate policyholder products and services.
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Edited by Braden Becker