It’s unfortunate to find out that people who don’t drive that much are still paying the same in auto coverage as people that drive more than them. In order to save money on your auto insurance, would you be willing to give up your privacy and allow your insurance company to track your every move?
New gadgets installed in cars will be able to tell insurers how many miles drivers have logged, what times of the day they drive, and even how frequently they abruptly stop and start. Other incarnations of the technology involve GPS devices that can even tell insurers precisely where drivers have traveled, and if they obeyed local speed limits.
Progressive’s MyRate program has some benefits. If you sign up, you get an immediate 5 to 10 percent discount and are promised up to 25 percent reduction in exchange for installing a small electronic device under the hood of their car. There’s no guarantee of additional savings: In some markets, Progressive says it could raise rates up to 9 percent for drivers who log too many miles or engage in other risky behavior.
Miles driven, abrupt stops and starts, and time of day are the three main things that Progressive cares about so as of now, the device does not have GPS capabilities (yet) due to growing privacy concerns by its customers. Also, MyRate customers get access to a Web site that lets them monitor their mileage usage and other driving habits, and so far, customers are happy with the program.
So what about you? Are you looking to save some money on your insurance? If you’re in Alabama, Louisiana, Maryland, Minnesota, Michigan, Oregon, or good ol’ New Jersey, then head to Progressive and sign your life information away.