Would you let a car insurance provider monitor your driving habits to get lower payments? This is auto insurance of the future.
Auto insurance companies always want an estimated number of miles driven, but these numbers are far from accurate.
What if they started tracking your mileage by a GPS like device or monthly check-in appointments? This is the latest thing in the insurance industry.
Progressive Insurance currently offers a MyRate program that does just that.
You have to install a device in your vehicle that records speed and time, but not location.
It can tell what time you drive and how far you go.
Is this too invasive? Well the question is whether you want to sacrifice privacy for savings.
Other insurance companies have also jumped on board.
California is pioneering this new form of insurance payment.
In October 2009 they approved the The Verified Miles Plan.
The devices are set to sell in January 2009.
It is estimated that it will greatly reduce mile driven and in turn reduce pollution and traffic congestion.
This plan would be perfect for occasional drivers that are currently paying the same premiums as the road hogs that drive all day every day.
It does make sense, but you have to consider that once the insurance companies have this data it is theirs to do with as they choose.
They actually own the information.
Kind of scary, but I wouldn't mind saving a few buck in those winter months when I'm rarely behind the wheel.