Allstate offers 10% discount when an individual signs up for this program and additional discounts up to 30% more are possible based on records of safe driving performance. These discounts are apart from regular discounts and awards of Allstate for safe driving records.
The telemetric device is getting installed in vehicles as a crowdsourcing method across the country.
Allstate plans to ensure that agency owners and employees use this device in various states and test it out. Allstate would also provide opportunities to drivers to improve its usage and experience, even as Allstate makes efforts in broadening the program.
Arizona, Illinois, and Ohio have already accepted the usage-based auto insurance program of Allstate.
It is believed that many more states would benefit from opportunities created by Drive Wise before 2012 ends. Drivers participating in this program would be able to avail discounts on their auto insurance premiums based on the driving habits and patterns of such drivers.
This crowdsourcing usage-based auto insurance effort is aimed at installing this device into major groups of people getting enrolled in this program. Already Allstate has tested this device for more than 350,000 hours internally, recording a driving of 11 million miles. This has helped Allstate in accumulating adequate driver data for building a solid knowledge base to evolve ways of recognizing safer driving habits. This knowledge base would also be useful in offering discounts on the premiums of policyholders according to their driving habits.
Interestingly, this internal testing of usage-based insurance resulted in significant changes in the driving habits of the participating drivers. Initially, only about one-fourth of the drivers were able to score within ‘safe zone’ but the proportion of drivers scoring within ‘safe zone’ surged to 75% when the testing continued.
Bob Otis, Vice President, Auto Product Operations, Allstate, commented, “Initial tests of Drive Wise shows that telematics technology can save lives, minimize injuries, and lead to saving of millions of dollars every year in property damage. The launch of this unique, usage-based auto insurance device for crowdsourcing test should help us in creating better insurance products for our clients. Agency owners and employees would also get encouragement to study and improve their driving habits.”
