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Have Your Driving Monitored to Save On Auto Insurance


You have no doubt seen recent commercials from auto insurance companies offering savings for having your driving monitored. Whether this appealed to you or not, you are probably intrigued as to how this works and how you can save money on auto insurance by participating. This is a rather new concept, and many drivers are balking at the intrusion it brings, but many are seeing big auto insurance discounts.

 

How Does it Work

How driver monitoring works, specifically, will depend upon the particular auto insurance company; however, in general, a GPS tracking system of some type is installed into the diagnostic port of your vehicle. Because it goes in the diagnostic port, monitoring is generally only available on vehicles made after 1996. The system will monitor miles driven, streets driven on and speed. Some systems only monitor the number of miles driven. Progressive was the initial leader in this field, but they have cut back by no longer including location and speed data.

 

Privacy Concerns

Driver Being MonitoredPrivacy concerns keep many consumers from involvement in the program. These concerns are the reason that Progressive reduced the scope of the data they collected and why those getting into the game now are only looking to collect data related to miles driven during a specific period of time. However, they are finding that the “Facebook Generation” is more accustomed to having their information being shared, so many consumers are latching on to the benefits that can come from the monitoring.

 

How This Benefits You

Driver monitoring can certainly benefit specific drivers. If you are someone who drives less than the average person, you can receive what is called by many insurers as a low-mileage discount. This can be as much as 10 percent off your premiums. If the company also employs the location and speed aspects of the monitoring, you may be in line for more substantial discounts. The purchase and installing of the device comes at no cost to you, so you don’t have to worry about spending any money. Some companies only monitor you for 30 days and use that information going forward to determine your auto insurance rates.

 

Which Companies are Doing it

As mentioned before, Progressive is the leader in this development. As with any competitive industry, it doesn’t take long for others to follow. GMAC was quick to jump on the bandwagon with their own version. Many other companies are following with variations. For instance, a Texas company, MileMeter allows drivers to take a snapshot of their odometer at one date and again at a later, specified date as confirmation of miles driven.

 

You Still Need to Compare Rates

While participating in a monitoring program can benefit many drivers, possibly you, it is certainly not the only consideration if you are trying to reduce auto insurance rates. You should take the few minutes required to gather auto insurance quotes. Get quotes from at least 5 companies, preferably 10, to get an understanding of which companies are ready to offer you cheap auto insurance. Our rate quote tool can help you do this for free. It takes just a few minutes, so get your cheap auto insurance in Florida today.

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