In Auto

What if your auto insurance rates were personalized to your specific driving habits?  Do you think your auto rates would decrease?  Insurance companies are willing to put you to the test.  New technology can now allow drivers to save as much as 30 percent on their auto insurance rates by having their driving habits monitored as they drive.  You can be rewarded for being a good driver and a growing number of companies are encouraging drivers to save money based on their good driving skills.

Through the instillation of a small electronic device, insurance companies can monitor your personal driving to see if you qualify for reduced auto insurance rates.  Usage-based insurance (UBI) allows insurers to monitor your driving in exchange for offering you potentially lower rates on your auto insurance.

What do these devices monitor?

Generally, insurance companies tend to all monitor the same basic types of information.  Your breaking during driving is monitored, extreme or hard breaking is recorded.  The number of miles driven over a predetermined speed is noted, usually 80mph.  The days and hours you drive during the day are also recorded including the total numbers of miles you travel are recorded along with the trip time, speed and the distance of your trips.  The results of your driving habits can be reported to you on websites so you are also aware of your results.

Insurance companies do not use this information to increase your auto insurance rates but there is also no guarantee of any rate reduction either. These driver scoring systems evaluate the overall “big picture” results of your driving habits.  No single instance of any monitored result should have an impact on your overall results.   Basically, your daily driving activities for a specified period of time are monitored to see if you are generally a safe driver who should be rewarded with a discount.

How is this data collected?

Your driving data is collected in a small electronic device that plugs into you vehicle and transmits your data to your insurance company for evaluation.  This device connects to the car’s computer system via a diagnostic port found in all cars since 1996.  This port is generally located under the dash on the driver’s side around the steering column area.

Consumers tend to be a little leery of any perceived violation of their privacy but these devices are not collecting any sensitive personal information.  Interestingly, more than half of consumers who expressed an interest in the UBI device stated they would be willing to change their driving behavior if it could help to save money on their auto insurance.  Though these devices are offered as a means of rewarding good driving behaviors, ultimately, the goal is to make the roads safer.

If you think your good driving needs to be rewarded, give us a call to learn how this technology can benefit not only your auto insurance costs but your driving habits as well.



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