Auto insurance rate

System based on GPS

In 1998, Progressive Insurance began a pilot program in Texas, where volunteers installed a GPS-based technology called autograph in exchange for a discount. The device monitored their driving behavior and reported the results through the phone to society. [9] policies were made more than upset having to pay for the expensive device than were over privacy concerns. [10]

In 1996, Progressive filed and obtained a US patent (US patent 5.797134) on their process. Progressive has also filed corresponding patent applications in Europe and Japan. UK car insurer, Norwich Union, has obtained an exclusive license for the progressive European patent application. They have recently completed a successful pilot test of the technology and is now commercially available under the brand "Pay As You Drive ™ [11]

Theoretical recent economic research on the social welfare effects of progressive technology telematics business process patents have wondered if the business process patents are Pareto efficient for society. Premliminary results suggest that they are not, but more work is needed. [12] [13]

OBDII system

In 2004, he launched another Progressive pilot program to allow policyholders to earn a discount on premiums by allowing them to use its TripSense device. TripSense connects to a car's OnBoard Diagnostic (OBD-II) port, which exists in all cars built after 1996. The discount is forfeited if the device is disconnected for a significant period of time. [14]

Automobile insurance rate in the United States

Available coverage

The consumer may be protected with different types of coverage depending on what insurance coverage purchases.

In the United States, liability insurance covers claims against the owner and, in general, politics, any other operator of the vehicle, provided they do not live at the same address as the policy holder and are not expressly excluded on the policy. In the case of those living at the same address, they must specifically be covered on the policy. It is therefore necessary, for example, when a family member is required reading age should be added to the policy. Liability insurance sometimes does not protect the policy holder if they operate any vehicles other than their own. When you drive a vehicle owned by another party, you are covered under that party politics. Non-owners policies may be offered, covering an insured on any vehicle that unit. This coverage is available only to those who do not have their own car and is sometimes required by the government to drivers who have previously been found at fault in an accident.

Generally, liability coverage does not extend when you rent a car. Global Policies ( "full coverage"), usually apply to the rental vehicle, even though it should be checked before. Full coverage premiums are based on, among other factors, the value of the insured's vehicle. This coverage may not apply to rental cars because the insurance company does not want to take responsibility for a claim greater than the value of the insured's vehicle, assuming that a rental car may be greater than the value of the insured vehicle. Most rental car companies offer insurance to cover damage to the rental vehicle. These policies may be unnecessary for many customers as credit card companies, such as Visa and MasterCard, now provide supplemental collision damage coverage to rental cars if the transaction is processed using one of their cards. These benefits are restrictive in terms of the types of vehicles covered. [15]

Liability

Coverage of responsibilities provides a fixed amount of coverage for damages an insured becomes legally obligated to pay as a result of an accident or other negligence. For example, if an insured unit in a telephone pole and the pole damages for liability coverage pays for damage pole. In this example, the insured may be responsible for other expenses related to damage pole of the phone, such as the loss of service credits (by the carrier).

Coverage of responsibility is available as combined single limit policy or as a policy rift limit:

Single Ceiling

A combined single limit combines property damage liability coverage and injury coverage combined in a single limit. For example, an insured with a unique combination of liability limit strikes another vehicle and wounding the driver and passenger. Payments for damage to the other driver's car, as well as payments for claims for injuries the driver and passenger would be paid under the same roof.