Pay As You Drive Insurance

[pj8708]

New idea.....Pay as you drive insurance.

This brings the chance of receiving a 10% to 35% premium discount, but also, a loss in your privacy.

After you read that short article, would you be willing to give up some of your personal privacy for a discount in your car insurance premium?

Paul

http://autos.aol.com/article/pay-as-you-drive-insurance-growing-despite-privacy-concerns/?icid=maing-grid7%7Chtmlws-main-bb%7Cdl22%7Csec1_lnk3%26pLid%3D363029

[1990LS400]

This is not new. Major insurance companies started pilot projects several years ago to understand how rates can be based on vehicle usage and driver behavior, e.g. adherence to posted speed limits. Personally, I have no problem allowing my insurer to eavesdrop on where and how I drive - where do I sign up? This technology could, however, cause difficulties for those with behavioral issues.

Anybody who has a phone made in the past 8 or so years has already given "permission" to be tracked. Even before GPS was standard on phones, a phone user could be tracked by triangulation. Those with Smartphones have probably given a variety of companies permission to offer them location based services. And vehicles like our Prius that have an "SOS" system (like Lexus Link) can already be tracked.

I strongly suspect what is eventually going to happen is that those with the worst behaviors are going to be paying the highest insurance rates or are not be able to obtain insurance at all. That's really not much different than it is now except that insurance companies are not going to have to wait until someone causes a crash to raise his rates or terminate his insurance policy.

[pj8708]

I am not suprised to learn that we're being tracked by a private "for profit" company, than I am to learn that my government has been peeping at me through the camera lens on my cell phone! ( thats a joke people. as far as I know your still safe from "Gort's" menacing robot eye.)

This type of rating seems to be more fair than puting all 35 year old males in one pot, who are married, have a job which pays "xx' a year, and only seem to have a claim, on average, once a year. Now isn't that peachy. But if each indivual was measured by their actual driving, rates would bo down for many, and those folks wouldn't have to subsidize the bad driverrs.

Paul

[LEXIRX330]

I have carriers that are using it but I don't recommend this unless adding a young driver. Which I think the value is priceless to let little Johnny know that his parents can know how he is acting behind the wheel.

All of the companies that have this do not have GPS enabled on these devices. I have read a lot about this and have been to several meetings. Some are capable but at this time it is not used. The main factors that they tracking heavy acceleration, hard braking, miles, and time of day.

Some companies make you leave the device in, others track for 6 months or so.

Personally I don't like this at all. I think it is big brother...also I think the companies are just getting data. These programs are only approved in the states that I have for discounts. Meaning your rate can't go up for bad driving. One major thing to point out this device and data will be turned over to authorities if it is requested from what I understand. I see pros and cons but I have been doing the insurance thing for awhile and trust me they are discounting way to much on this right now. It is the new hot thing and once they get the data they are looking for they will reduce the discount.

[LEXIRX330]

And Paul they don't put all 35 year old males in a pot. There are over 120 rating factors that determine auto rates with major carriers. With credit, and years of continuous insurance and limits as well as residence discounts, as well as driving records being some of the main ones.

[pj8708]

And Paul they don't put all 35 year old males in a pot. There are over 120 rating factors that determine auto rates with major carriers. With credit, and years of continuous insurance and limits as well as residence discounts, as well as driving records being some of the main ones.

Ha,Ha, I guess I got caught. As I was writing in the thread above, I must have been thinking about our insurance renewal letter which had just come citing the fact that I just turned 65 in July. This is the magic age where every day the future financial picture of the USPS becomes secure because of all the junk mail one receives those offering car insurance that promise's to not increase your insurance rates, another is selling the fantstic Temp-purpedic or the wal-into bath tub. Also, cures for bunyons, bad breath from dentures, and on and on. The place that caught my attention the most was the yearly increase due to age alone. That is what scared me the most.

So subconciously, I was, (still am,) pretending I'm still 39 !!??

(these thoughts and views are strictly the results of the workings of the idle mind.)

Paul

[pj8708]

I am not suprised to learn that we're being tracked by a private "for profit" company, than I am to learn that my government has been peeping at me through the camera lens on my cell phone! ( thats a joke people. as far as I know your still safe from "Gort's" menacing robot eye.)

This type of rating seems to be more fair than puting all 35 year old males in one pot, who are married, have a job which pays "xx' a year, and only seem to have a claim, on average, once a year. Now isn't that peachy. But if each indivual was measured by their actual driving, rates would bo down for many, and those folks wouldn't have to subsidize the bad driverrs.

Paul

Thanks David for the explanation of how some auto insurance is rated. If you would have the time some day I think a lot of members would be very interested to know just how the auto insurance process works.,

Think about it.

Thanks David

[LEXIRX330]

I made a post awhile back on ways to save on auto insurance. It's on here somewhere... :whistles:

But you are correct there are loads of companies that re-tier you based on age alone. Loss data backs up where the claims come from. But you also get new and exciting "retired discounts too" it isn't that bad.

Anyway just move to MD, VA, or DE and I will take care of you!

[SW03ES]

I'm not a fan of these "snapshot" devices either. I worry about the day that they might be required to receive your coverage...

[LEX-SV]

I remain skeptical as to how much I would actually benefit dollar-wise (even being married, not young, 0 accidents, a 1 point moving violation, high credit score, no Vettes in garage). I'll pass, since my insurance company already has data on miles driven for each of my cars which impacts rates.

[Qqueen]

Pay as you drive insurace is certainly a relatively new concept. Its a great idea for those people who dont use their car much.You get great savings by paying only for the kilometers you drive.