New kinds of Auto Tech Can Lower Your Rates, but tracks your moves
Saving on auto insurance is the dream everybody else to have, with the rising rates in today’s market most customers will make sure that they can do whatever they can to save on their rates. With these new emerging Technologies most wishes will be granted. Does auto insurance technology can lead to lower premiums, but on the flip side it tracks your every move.
Auto insurance companies that begin to experiment with with drivers I charged them solely based on their habits as opposed to the traditional factors that their premiums are based on. Such as location age, and even driving history.
So how does this really work? Well traditionally you fill out a form putting your location your age and how many accidents you’ve ever been in and then you’d get system-generated quote. This can be quite confusing because you may not have put in all the correct information or you may have even been quoted something that’s beyond your actual driving history. What is insurance companies are aiming to do is simply letting them track you while you drive. Essentially they give you a a module that you put in your OBD Port they track your driving habits for a bit and then based on that you would get an accurate insurance premium based on your driving habits.
And the market is called a usage-based insurance policy. a company that operates in a similar fashion is Progressive Insurance. Progressive insurance offer their customers discounts based on their driving through a program they called the snapshot program. The Progressive Snapshot program uses an app that tracks your driving and offers discounts and rewards for the safe driving you conduct. James has the business leader of usage-based insurance at Progressive Insurance states “The benefit for the consumer is both the encouragement of safer driving — and the opportunity to earn discounts for that safer driving — all in the way they want (either with the dongle or the mobile app),”.
so yes it could be a little bit daunting to know that you’re driving habits are trapped although what the Privacy statement released by Progressive Insurance the collected data is used to calculate insurance quote or actually the prime rate that the driver will pay once a policy is remote. The concept of this kind of makes driving a little bit of a game. As you drive with a snapshot program that enabled discounts are earned and it’s a way to encourage drivers to keep the app running to maintain a good insurance rate. In order for you to do this drivers must have the location tracking on Progressive Insurance to accurately track their driving.
Bring something like this gives a company a way to collect data and offers customers a great way to safe. Although at this is an exchange for their privacy. many customers may find the trade-off unacceptable quite frankly a little bit scary. Too many location is a sacred thing and showing that personal information to be a deal-breaker and may not be worth sacrificing a couple dollars a month to save on your insurance premium.