Alva Review-Courier -

I’m a car collector. To save on insurance, I checked on seasonal coverage. Seasonal coverage policies may be written to restrict use during the months when the roads are salted, temperatures unfavorable and car shows unscheduled. Some companies offer seasonal coverage for vehicles in daily use that are exposed to harsh or unexpected conditions. Under the latter, premiums go up, under the former, prices drop. These policies are referred to as “usage-based insurance” (UBI).

As more people rely on ride-hailing, car-sharing and public transportation, insurers are preparing for a trend that could upend an industry that relies on zip code, marital status, past driving records and vehicle model. There are dashboard devices and smartphone apps that in a new science, telematics, measure dangerous habits like speeding and hard braking. Cars and phones have the sensors necessary to generate reports that may lower your premium as much as 15 percent, lead to an increase in premium, or cancellation of the policy.

Arity, a data-gathering firm, is compiling driver information to correlate behavior with accident risk resulting in an algorithm that, like credit score, could follow you from vehicle-to-vehicle. Its’ clients include Uber and trucking fleets but may expand to the insurance market place in general.

Privacy concerns aside, real-time tracking could alert drivers to dangerous conditions, suggest alternate routes and even send a distracted driving alert if they are using their cell phone behind the wheel. The objective is more than saving money, it could also save lives and insurance companies as well.