What is Your Take on Usage-based Auto Insurance...

[sam816]

...either as an agent or as a consumer?

I received a quote from a major (captive) carrier that is very competitive. I was also told that based on my driving behavior which will be monitored by an on-board tracking device, my rate could go either higher or lower within a pre-set range.

I have read this is the future of auto insurance.

What has been your experience with this? can one actually save money? should the customer be concerned with privacy issues, etc.?

TIA.

 

[jlanier]

I am assuming you are referring to the "snapshot" device. I am a snapshot authorized agent and from what I have been told the device is not used for tracking. Only for driving behavior (speed, braking and time of day vehicle is most often used). Also the device cannot make your premium increase due to the behavior only decrease if results are positive.

 

[todd02]

I am assuming you are referring to the "snapshot" device. I am a snapshot authorized agent and from what I have been told the device is not used for tracking. Only for driving behavior (speed, braking and time of day vehicle is most often used). Also the device cannot make your premium increase due to the behavior only decrease if results are positive.

This is pretty much a comical statement. "Can not make your premium increase". If progressive notices an unsafe driver they can easily increase your rate at renewal and call it a "rate adjustment". This is by losing a discount here or there or whatever they decide to come up with.

 

[jlanier]

As stated.. this is what Progressive tells their agents and customer's. The fine print on their infinite commercials will state otherwise. I am by no means a die hard "Progressive or nothing" agent. Simply giving information on the device.

 

[TylerP]

As stated.. this is what Progressive tells their agents and customer's. The fine print on their infinite commercials will state otherwise. I am by no means a die hard "Progressive or nothing" agent. Simply giving information on the device.

State Farm has a "Drive safe and save" program that uses one of these trackers... It does, obviously, the same as most of the other tracking devices insurance companies are starting to use. The crappy thing about it is, it gives the customer a discount and they get to use the device for a year free of charge, but the second that year is over, they are forced to pay a monthly fee to a third-party on top of what they pay already to State Farm.

It can potentially lower your rate but added with the monthly charge, it just seems dumb to me. I haven't been with State Farm for sometime but there is a chance your rate could go higher based off your driving as well... but don't quote me on that. I am not in that loop anymore

 

[Cash]

State Farm has a "Drive safe and save" program that uses one of these trackers... It does, obviously, the same as most of the other tracking devices insurance companies are starting to use. The crappy thing about it is, it gives the customer a discount and they get to use the device for a year free of charge, but the second that year is over, they are forced to pay a monthly fee to a third-party on top of what they pay already to State Farm.

It can potentially lower your rate but added with the monthly charge, it just seems dumb to me. I haven't been with State Farm for sometime but there is a chance your rate could go higher based off your driving as well... but don't quote me on that. I am not in that loop anymore

Seems like a lot of work and risk to save money when you can just switch to someone else and save money.

 

[TylerP]

State Farm has a "Drive safe and save" program that uses one of these trackers... It does, obviously, the same as most of the other tracking devices insurance companies are starting to use. The crappy thing about it is, it gives the customer a discount and they get to use the device for a year free of charge, but the second that year is over, they are forced to pay a monthly fee to a third-party on top of what they pay already to State Farm.

It can potentially lower your rate but added with the monthly charge, it just seems dumb to me. I haven't been with State Farm for sometime but there is a chance your rate could go higher based off your driving as well... but don't quote me on that. I am not in that loop anymore

Agreed but some people love their agent, so they are willing to try things. And that is what a lot of these Agents are banking on. It's a win-win for the agent and company. Get a device in the car and you get information for the company as well as another way to work on that retention


Always about that retention

 

[wfs]

I am no fan of these devices, but I think the industry is going in that direction. Soon, all cars will have telematics devices installed (some law that was passed by your President). And I believe that many auto insurance companies will be able to "tap into" that device with your permission. It's going to be like club cards at the supermarket. You don't need one, but it will cost you much more without one.

All in the name of tracking everything. It makes good business sense (I guess). It allows companies to rate people based on their actual miles, etc...

I'm tired of being tracked. I use fake names for club cards. I no longer use google. And I will never put one of these devices in my car...