Auto Insurance This section provides information on personal auto insurance. Coverage Options What Affects Auto Premiums Discounts Claims If You Can't Find Coverage If you have a poor driving record and are unable to find an insurer who will offer you coverage, you may be eligible for coverage under the Alaska Automobile Insurance Plan (Assigned Risk). The plan assigns applicants to private insurance companies doing business in Alaska. For more information, ask your agent or call AIPSO at 800-227-4659. Related Automobile Insurance Guide Driving for Uber, Instacart or similar? Your Auto Policy Likely Excludes Coverage Prepare Your Teens for Safe Driving Usage-based insurance Usage-based insurance (UBI), is when auto insurance tracks mileage and driving behaviors. UBI is often powered by in-vehicle telecommunication devices (telematics)-technology that is available in a vehicle that is self-installed using a plug in-device or already integrated in original equipment installed by car manufactures or through smartphone applications. These wireless devices transmit data in real time back to insurers, such as: Where you typically drive How many miles you drive Time of day Air bag deployment Driving habits such as taking hard corners or braking, rapid acceleration. How do auto insurers determine usage-based insurance premiums? Insurers use the data they collect from the wireless device to help determine your customized insurance premium. To come up with how much you’ll pay in premiums, your insurer may combine the data with traditional factors typically used by the auto insurance industry. Those driving slower for shorter distances during the day, for example, will probably be charged less than someone who drives longer distances at night and rapidly accelerates when taking hard corners. UBI associates costs with individual and current driving behaviors, which may help you break away from traditional auto insurance factors that influence how much you'll pay in premiums. Some potential disadvantages of usage-based insurance Privacy concerns related to having your driving tracked. Some consumers may be uncomfortable sharing their location and driving behavior with an insurer. While consumers can expect a lower premium if your driving behavior aligns with what the insurance company decides is lower risk, not all drivers will meet the company's standards needed for a discount. Insurers are still developing how they’ll use the raw data they collect to price auto policies. Possible advantages of usage-based insurance Linking insurance premiums to your driving performance allows insurers to price premiums more accurately. Your premiums may go up or down depending on your driving behavior. Low-risk drivers receive lower premiums. A few consideration in choosing usage-based insurance Do I think my driving behavior will help my premiums? Am I willing to alter my driving behavior for a discount? What potential savings can I expect if I let my insurer monitor my driving behavior? What exactly will the insurer monitor? Will my insurer allow me to decide whether information from a UBI device is used after an accident to settle a claim? Do I trust my insurer with my information? Other helpful links about usage based insurance: www.insureuonline.org/drivecheck.htm www.content.naic.org/cipr_topics/topic_telematicsusagebased_insurance.htm