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Would You Give Up Your Privacy to Save on Your Auto Insurance?

Piggy bank behind car wheel on car dashboard saving your money as an insured driver

Here’s a question you might find difficult to answer – would you be willing to give up your privacy to save money on your auto insurance? For some, it’s a definite “no”. But, for others – they’re willing to try anything to bring down their auto insurance premiums. And, the way to do this is with the use of telematics, which basically involves an insurer placing a wireless monitoring device in your vehicle that reports data, such as your driving habits, your obedience to speed limits, and mileage driven, among other information.

Aside from potentially lowering your premiums, should you prove to be a good and safe driver, it can encourage motorists to become better drivers in order to earn those savings. Usage-based insurance policies, also known as Pay-as-you-drive programs, are gaining in popularity across the country, since they can significantly reduce insurance rates.

Today’s new cars are substantially safer than they were only five years ago. Multiple airbags, collision avoidance features, and external cameras, providing better sight to the rear of the vehicle, are just a few of the technological advances made by auto manufacturers.

Keep in mind that – when you agree to take part in a usage-based program, your insurance company will literally be following your every movement as you sit behind the wheel. The information gathered while you drive your car will be used to determine your risk level for coverage, as well as paint a fairly clear picture of what you do every day.

So, if the idea of Big Brother knowing your every move from the moment you turn on the ignition to when you pull into your driveway makes you squeamish, you’ll probably fall into the “no” category. However, if you’re the adventurous type who feels they have nothing to hide…then, you may want to consider trying a usage-based program if your current insurance company offers the option.

As with any program, you have both a positive and a negative aspect to think about. The upside is a reduction in your premiums. On the downside, you have to be on your very best driving behavior at all times…and, that can be stressful for those who tend to go through an occasional red light or fudge a little on the speedometer from time to time. Oh yeah…just so you know – the telematics will also monitor hard-braking, rapid acceleration (if you’re prone), and the time it takes you to get from Point A to Point B.

Still, as pay-as-you-drive programs become more common, consumers will not only have more choices to maintain affordable coverage, but they’re also very likely to change the future of the auto insurance industry. For anyone doubting the progression of these programs, the National Association of Insurance Commissioners predicts that 20 percent of all auto insurance policies in the U.S. will encompass some type of usage-based coverage over the next five years.

Whether you take part in the program or not is entirely up to your comfort level. Your willingness to participate in a pay-as-you-drive plan will most likely depend on your driving record – the number of moving violations and accidents.

While usage-based insurance is something you might want to consider to save money… another way you can save is by making sure you’re getting the best rate on your auto insurance. Why not get a free auto insurance quote today?

Would you be willing to give up some of your privacy to save on your auto insurance?
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