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Understanding Usage-Based Car Insurance

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Did you know that there are 30 or 40 usage-based auto insurance systems being used by carriers today? We didn't -- and most independent agents aren't aware of that either, says Kevin Ament with Progressive. We wanted to know more about usage-based insurance (UBI) and on this podcast Kevin does an excellent job outlining the benefits and challenges of UBI. He also addresses common misconceptions of agents about UBI. For example, many think UBI means lower commissions, but just the opposite is true. Customers using UBI lead to longer retention and increased commissions. Yet, aside from the benefits to both agents and carriers the big win is the fact that customer satisfaction is higher, Kevin says. "UBI customers are happier and feel that UBI is more fair than traditional pricing models. They like being in control and paying for their own driving habits versus subsidizing bad drivers." If you want a fresh take on UBI, take a listen.

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