Insurance Companies Using Tech to Determine Rates
Changes in technology could soon mean that your insurance premiums are altered. For years, insurance companies have solely relied on the fact that you haven’t received a traffic ticket or been involved in an accident to determine your low rate. Today, companies are able to install devices on your car that give a detailed picture of exactly how safe you drive.
So far, enrollment in these data-tracking programs is voluntary. Progressive has a program called “Snapshot” and Liberty Mutual will be launching “RightTrack.” Drivers who enroll in these optional programs are often given an automatic discount on their premiums along with any discounts received via safe driving habits.
Insurance companies have agreed that any information gleaned from these devices will result in rate drops, not hikes. Poor drivers will not see their premiums increase — for now. What will happen in the future as these devices gain in popularity and acceptance is anyone’s guess. As it stands, if you are a safe driver, installing one of these devices on your car can net you a decent discount the next time you pay for your policy.
One this is for certain: No matter how you drive, these monitoring devices are going nowhere. Consumer advocates are keeping an eye out for new cars that are able to report back to insurance companies, providing driving information to agents. Until that day comes, drivers who wish to utilize their good driving habits to their benefit should call their agent. In just a few moment’s time, any driver can have a tracking device installed on their vehicle.