Discount Auto Insurance – Based On Driving Factors

Discount auto insurance is now available by the number of miles you drive. It is starting to spread across the country. This idea has been around for a long time but now insurance carriers are starting to implement the program. The next time you are getting 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.

Many government officials and non-profit organizations have questions 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. The other concern is that it will not benefit people that live in rural areas because they need to drive further than the average city dweller daily.

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?

A concern of mine is if this program is picked by all the main insurance carriers in the future if you don’t part take in the program will your premiums automatically increase. I understand the insurance company’s point of view of offering lower rates to more responsible drivers that do not drive that far but years down the road how will this affect all of us?

This program was released in New Jersey on August 8th of 2008. Let’s see how long it will take to be available in all states. It will also be interesting to see what other insurance companies adopt 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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