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A good driver can save you some money.
Gas pumps aren’t the only things that put a strain on your wallet. Auto insurance rates continue to rise and many drivers are looking for ways to save money. Most insurance companies sell auto insurance tracking devices these days, but what are they and how do they work?
Auto insurance tracking devices, also known as “driver monitors,” have seen usage-based insurance discounts and premium options that use tracking devices.
These devices connect to your car or are app-based, collect data about your driving habits, and potentially offer discounts to safe drivers or those who drive less often. I will explain.
What is Auto Insurance Tracker?
Auto Insurance Tracker is a plug-in device or smartphone app that allows you to track your vehicle, driving habits, and more, and save up to 30% on your insurance premiums. The first thing that comes to mind is progressive snapshots. This may offer usage-based premiums.
All of these devices use GPS and other sensors, many of which are already built into mobile phones. Your insurance company will then use the collected data to see if you are a safe driver.
There are two main types of car insurance trackers available. The first is basically a dongle that the user plugs into her OBD-II port under the steering wheel. It plugs into the same spot that the DMV uses to smog your vehicle. This is an “on-board diagnostics” port that allows access to vehicle computer information.
The second is an app that you can download to your smartphone. The mobile app uses your phone’s GPS, data, accelerometer and other sensors to track your movements and driving. Tracker types vary by insurance company or plan and may vary by user and region.
These days, most insurers are ditching dongles in favor of mobile apps. Connect that app to a Bluetooth-enabled device provided by your insurance company and place it in your car. These include Progressive Snapshots, State Farm’s Drive Safe & Save, and Geico’s DriveEasy.
How do these insurance trackers actually work?
So how do these devices work and what do they track? Again, this varies by brand, but the device or app tracks your driving habits, location, vehicle information, and more. Insurance companies offer dongles or apps as part of their usage-based insurance (UBI) program.
It then collects metrics such as speed, hard braking, mileage, and even time of day to calculate monthly premiums. Here’s a general list of things you can expect your device or app to track.
- running speed
- driver acceleration style
- Brake habits (braking strength, etc.)
- Steering (fast corners, sharp turns, etc.)
- Driving time, length, direction and distance (day or night driving)
- Mileage
- driving place
- Phone usage (app-based tracker)
- more
As you can see, these devices and smartphone apps collect a lot of information. Insurance companies understand that hard braking is part of everyday life, but the system can take into account all important information such as your location, traffic lights and speed limits.
Insurance companies know that certain situations occur on busy roads, but if you drive erratically all the time, they will recognize it. Conversely, if you are a safe driver, the system will collect that data and your insurance will be cheaper.
Car Insurance Tracker Pros and Cons
As you can probably imagine, there are various pros and cons to using a car insurance tracking program. The most obvious advantage is lower insurance premiums, which can save you money, especially if you’re a safe driver or don’t drive very often.
Additionally, if you drive frequently, pass stop signs, or have poor driving habits, you may not want one in your car. rate may increase. Insurance companies tend to frame it as “you get discounts no matter what”, but that’s not always the case.
All of these insurance tracking devices track your location thanks to GPS. Knowing the vehicle’s location has several benefits beyond pricing. For example, location data can help assist first responders in an accident or recover a stolen or towed vehicle.
Another great benefit for parents is the ability to track or monitor children and teenage drivers. Many of these platforms offer apps that allow parents to see when and where their children have gone, speed, and other risky behavior. A great way to keep track of children and older family members.
However, privacy is a concern with all data collected by insurance companies.according to Insurance Information Institutemany states have enacted laws to ensure that insurance companies are open, honest, and transparent about the information collected.
That said, keep in mind that insurance companies have a ton of information about you, where you’re going, how fast you’re driving, etc. Some can track phone usage, some do. This can result in higher charges if you are actively using your mobile device to send text messages while driving.
Should I use a car insurance tracking device?
So are insurance tracking devices and driver monitors worth considering? Honestly, I can’t answer that question. Clearly, there are some big benefits. Whether it’s tracking your kids, finding a stolen car, or saving you money every month.
Again, privacy concerns (in general) are on the rise these days. where does this information go? Does the company sell your data and can you opt out of sharing certain details? These are all questions you want to ask your provider.
Ultimately, it’s up to you. If you are a safe driver with good habits, you can benefit from it. If you don’t break speed limits, drive very little at night, or if your annual mileage is less than 11,000 miles, you might get a discount.
Some auto insurance companies offer apps that you can download as a test and run for a few days, after which you can see if you qualify for a cost savings plan. If you have a , remember that every movement you make in your vehicle is tracked, monitored, and aggregated into data points.
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