The demand for usage-based insurance is driven by the reduction in insurance premiums as compared to regular insurance and risk-related cost and increasing vehicle sales and on-road vehicles. Ambiguity over regulations and legislative environments are acting as a restraining factor for the usage-based insurance market.
New Jersey drivers can now pay per mile for their auto insurance through Allstate. The rise of usage-based insurance could lead to a decline in auto accidents in the future and impact collision repair shops.
This partnership, which currently tracks 3.3 million cars, calls attention to two key trends in collision repair: vehicle data sharing and OEM-insurance partnerships. Here's a brief breakdown of what you need to know.