Posted on 07/09/2014 12:11:09 PM PDT by PoloSec
The proposition is simple: Install a device in your car and allow your insurance company to monitor your driving—how fast you drive, how hard you brake, how sharply you corner, and so on. In exchange, it will give you a discount on your premiums.
That might sound alarming, but it shouldn’t be surprising. Considering internet users already happily trade data on every online move they make in exchange for free services, the only surprise is tracking-based insurance isn’t already more widespread. Progressive Insurance, the biggest such insurer in the United States, says it found that
After analysis of billions of miles in driving data, Progressive has found that key driving behaviors—like actual miles driven, braking, and time of day of driving—carry more than twice the predictive power of traditional insurance rating variables, like a driver’s age, gender and the year, make and model of the insured vehicle.
The average discount on premiums for a Progressive customer who agrees to be tracked is between 10% and 15%.
In future, if you don’t agree to be tracked, you may not only pay higher premiums; perhaps you won’t even be eligible for insurance from most companies. It could be like having a shady credit history, or failing to provide the basic “know-your-customer” information required to open a bank account. “In the end, serving the ‘naysayers’ may become a specialty market niche for some carriers,” suggests a recent report (pdf) on usage-base insurance programs from Deloitte.
My dad believed that insurance was like betting against yourself and he refused to buy any...
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Not any more. I carry insurance for those idiots who don’t. Where I live, the chances of an uninsured driver hitting you is very high.
I just posted something about her. I am sorry but I will not buy anything from her and I change the channel when she comes on.
I’m sorry, did the metaphoric response come across too vague? Ok...Geico and progressive and all images and characters used in the advertisement productions for their products.
Big Brother is coming soon... and it will be through “private” channels first...
There are already stand-alone instruments that measure braking, cornering and accelleration forces. The car magazines used to use them to measure performance, perhaps they still do. I'm sure that the insurance companies will be quick to adapt that hardware to their system, so the pre-OBD car owners can get the lower rates, too.
Actually my old man worked in the finance business for most of his career. He understood insurance pretty well since he occasionally sold it. But he had a visceral feeling against the idea of ‘betting against himself’ and saw most insurance in that light. His plan was to die broke—and he pretty much succeeded. No attorney, no matter how vicious would have gotten much from him. Now in his flush years, when he had something to lose, I’m sure he had car insurance.
I don't have earnings, assets or real property but thanks.
With State Farm I voluntarily installed this device on both my vehicles to get reduced premiums. They were free for 6 months. Now I get billed, so ready to remove them. If I could afford it, I’d use them and their extra features. Not too worried about some yo-yo out there watching where and how I drive. Have at it!
Okay, so he had nothing, and no dreams. I can’t even relate to that. In that case, insurance wasn’t “betting against himself” - but it certainly would be irrelevant.
Not in this state.
Even if it were suspended I’d drive anyway.
Thanks.
BTW, a lot of people sell insurance, especially health insurance, who have no idea what the concept of financial risk management even is.
A WHOLE lot.
Definitely way past her sell by date.
If they only give the best rates to those they can track, and charge those they can't track higher rates, then those who own vehicles that cannot make use of the device they use for tracking purposes (pre OBD-II cars) will be charged the higher rate, regardless of how they actually drive.
These things exist explicitly to nail people like me. I speed every single time I get behind the wheel, but I’ve only had one accident in my 25 years behind the wheel (red light runner, 100% not my fault). They want to charge me more even though they never have to outlay more because of me. So my answer to being “offered” one of these would be a big fat Francis Urquhart.
AHA….got it, thanks. And good point.
It’s touchy for me. I have a perfect driving record, but I drift every day on my way to work...
Lot of Francis Urquhart in the near future methinks…..:)
There is a adverse selection problem. Only those drivers who think they are safe drivers will be willing to put a device like that in their car. If this becomes de facto or de jure mandatory overall insurance rates will stay the same. There will massive re-distribution of who pays.
Works for me. I use Allstate Drivesafe and have over ten percent reduction in premiums. It would be more but I get dinged for braking too strongly. After fifty years of driving, I’m past being able to change that. Otherwise, what’s not to like? I’m a lot more paranoid about what the federal government is doing to my liberty that what Allstate will reward me for.
I am waiting for smart refrigerators, which will tell me what to eat and what not to eat, and when. They could lock when a certain calorie limit is reached, or if ice cream is put in the freezer, turn themselves off to destroy it.
Don’t you love Big Sister?
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