Insurance companies consider many different factors to determine auto rates, ranging from age and gender to driving records. As we all know, a factor like age is not a perfect guide to determine a specific individuals driving habits so many companies have developed telematics programs that can track your unique habits to better establish insurance rates. The original telematics programs involved installing a device in your vehicle to track driving information such as speed (acceleration and deceleration), time of day and mileage. As technology has improved, most companies are now able to run these programs with applications installed on a cell phone making it even easier to enroll.
Some may ask, why would I want to allow the insurance companies to track my driving? The answer is simple, not only will you get rewarded with more favorable rates if they can determine consistent patterns of safe driving habits, many also give an additional discount on the policy if you complete their program. These discounts can range from 5% to 30% depending on the insurance company so the savings can be significant. On the other side, if they see a pattern of unsafe driving the premium could be negatively impacted. The type of data they generally collect include: hard braking, amount of time driven, time and day of driving, fast starts, trip regularity and distracted driving.
Currently three of the auto companies that we write offer a telematics program: Progressive, Safeco and Travelers. Here is some specific information on these three for you to consider:
- Immediately receive a discount of up to 10% just for signing up.
- You decide your participation method: the SnapShot mobile app or the plug-in device.
- You can log in to your policy or check the app at any time to see how you are doing.
- There is no cost to participate. You may choose to opt-out of the program after 45 days, however, you would be subject to a surcharge at renewal.
- Your driving results are set at the end of your driving period. These results correspond to a discount for safer driving habits or an increase for riskier habits. While your driving results are set at the end of your driving period, your corresponding discount or increase percentage may change over time.
- You are guaranteed at least a 5% discount for participating and can even earn up to 30%.
- You receive a initial 10% discount when you enroll in RightTrack. This 10% discount remains in place until the final driver completes their 90-day review period. After that, the final discount is applied.
- The final program discount remains for the duration of your policy.
- A 90-day program that rewards your safe driving habits with great savings at renewal.
- You can earn up to 22% savings on your auto policy, with riskier habits resulting in higher premiums.
- New customers can get up to an initial 10% savings just for signing up.
If you are interested in learning more about any of the above referenced programs or just an auto quote in general please let us know!