The most important reason to have auto insurance is the peace of mind it provides by allowing you to leverage small regular premium payments into coverage you may not otherwise be able to afford. The average cost of an auto accident ranges from $4,700 when the accident results in property damage to $1,750,000 when a death occurs, according to the National Safety Council.
In recent years, insurers have begun employing telematics, which is the use of an onboard device to monitor and help change driving habits to lower insurance costs and reduce accidents.
“Ideally, telematics help customers feel cared for and appreciative of an insurer meeting their personalization expectations,” says Dror Pockard, chief strategy officer at telematics provider Earnix. Effective telematics, he says, should engage and communicate with consumers, offer processes like high-accuracy crash detection, and deliver personalized offerings in real time.
Financial coverage, real-time safety features, and insulation from catastrophic loss are all part of what auto insurance is and does. Knowing how it works and what types of coverage are available can lead to protection and peace of mind behind the wheel.