October 23, 2008
Discount Auto Insurance Program – Based On How You Drive
A discount auto insurance program is now available by the number of miles you drive. It is starting to spread across the country. This idea has been around for a long time but now insurance carriers are starting to implement the program. The next time you are getting auto insurance quotes see if it is available.
The program first started on the west coast as a pilot discount auto insurance program and it was recently approved for New Jersey through Progressive insurance. There is only one other company that I am aware of that offers auto insurance quotes this way; and that is GMAC Insurance who only offer it to people that have Onstar in their vehicles.
Progressive insurance will have a devise attached to you automobile to track the speed you drive, breaking habits and mileage. GMAC's Onstar has a GPS tracking system and I'm not sure of how they measure your driving habits. This is what causes some concerns.
Some non-profit organizations and government officials are concerned about the tracking measure that will be used. Some feel by adding one of these devises to your car you could be giving up some constitutional freedoms. Another concern is that all people will not be able to benefit from this program. Like people that live in rural areas need to drive further than the average person living in the city.
The discount on your auto insurance could be as much as 9% over people that don't participate in the discount auto insurance program. My concern is how much can your premium be increased if your driving habits to fit what the insurance company has set as normal. Also how does the insurance company determine what is the correct breaking pressure?
A concern of mine is if this program is picked by all the main insurance carriers in the future if you don't part take in the program will your premiums automatically increase. I understand the insurance company's point of view of offering lower rates to more responsible drivers that do not drive that far but years down the road how will this affect all of us?
This program was released in New Jersey on August 8th of 2008. Let's see how long it will take to be available in all states. It will also be interesting to see what other insurance companies adopt a similar program.
I believe every individual should be able to decide if they want to participate in the discount auto insurance program. You know how you drive and how far you travel daily. I am totally open to the underlying thought but I am a tad cynical about how they might monitor my driving habits and how this will affect us in the future.
About the Author:
Before you purchase auto insurance online be sure you check Joe's website QuoteMatcher.com by clicking the following link to find terrific ideas on getting discount auto insurance. You will be able to compare cheap auto insurance quotes from multiple companies quickly so you can start saving today. Joe is a licensed insurance professional that writes interesting articles on insurance related topics.
Filed under Automotive by Joseph Welusz