Discount Auto Insurance – Based On Driving Factors
Oct 23rd, 2008 by Joseph Welusz
You can now get discount auto insurance based on the total amount of miles you drive. It is starting to spread across the country. This underlying thought has been around for a for a long while but now insurance carriers are beginning to initiate the program. The next opportunity you get to get 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 there vehicles.
Progressive insurance will send you a devise you attached to you automobile to track your mileage, speed you drive and breaking habits. GMAC’s Onstar program is a little different. They use the GPS system already provided in you car but I’m not sure of how they measure your driving habits. This causes concerns to some people that are trying to cheap auto insurance.
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 city dweller.
The discount on your auto insurance could be as much as 9% over people that don’t participate in the 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?
I’m concerned that if this program is put in place by all the big insurance carriers in the future and if you don’t part take in the program will your insurance rates start at a higher premium. I can how and why the insurance company’s want to offering lower premiums to more responsible drivers that do not travel taht far daily but years down the road how is this going to affect all of us?
This program was put in place in New Jersey on August 8th of 2008. Let’s wait to see how long it will take to be rolled out in all the states. It will also be interesting to see if other insurance companies put together a similar program.
I believe it should be your decision to make if you want to participate in a program like this. You know how you drive and how far you drive. I am totally open to the concept but I am a little weary about how they might track my driving habits and what they are compared too.
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