Lower auto insurance rates by installing high-tech gadgets


03Insurance companies lower car insurance rates for drivers with safe driving habits.  All that one needs to do is to install safety features or a little high-tech device which will help save up to 30% on their auto insurance rates.

Allstate and Progressive are the first companies in America that reward drivers with safe driving habits where driver monitoring gadgets are used to evaluate safe driving.  This safety device is almost the size of a pack of cigarettes and helps in monitor driving records such as mileage, speed, braking etc.  All that the device does is monitors safe driving habits.

The use of this device is completely voluntary and drivers who enroll in Allstate’s Drive Wise program and Progressive’s Snapshot program are immediately rewarded with a discount on enrollment.  From then on, the movements of the drivers are monitored and recorded in order to determine the discount that could be offered.  Safe driving habits as well as low mileage will certainly ensure a discount in the car insurance rates.

Similar programs are offered by State Farm for the drivers who use OnStar which reports the mileage on a monthly basis while they are enrolled in the Drive Safe and Save program.  The discount will be issued by State Farm based on the readings with regard to mileage.

As these programs use the current data which is collected while on the go.  It is not possible to get a quote and do a comparison with other auto insurance rates.  The closest one can get is to get an average savings and rating which might be subject to change depending on the driving habits.

While Allstate’s Drive Wise is presently available only in Illinois, other states will also be included before the second quarter of 2011.  The Snapshot program by Progressive is offered currently in 20 states and State Farm’s Drive Safe and Save program is presently available in Ohio and California.

Several hundreds of dollar can be saved by clients who follow safe driving habits.  However, according to Progressive and Allstate drivers with poor driving habits will not be penalized it’s just that they will not be able to avail the discounts.  But since State Farm is a mileage based program discounts up to 45% can be availed by maintaining low mileage records and going over and above the mileage limits will see an increase in premium.  These measures will help in minimizing accidents and help save lives.