Install safety devices and cut your auto insurance bills


shutterstock_32810758You cannot cut down on auto insurance bills by just being a safe driver and not putting a lot of miles on road.  You will have to prove it to the insurance company.  In a trend that is fast catching up, insurance firms will drastically cut down on premiums for drivers who are willing to install the electronic devices to their vehicles, in order to check how much they drive each month and to prove that they are safe drivers.  While some of the drivers are jumping at the opportunity to make some savings, there are those who think that Big Brother is watching. Whether you will benefit or not will depend on how long you will commute each day. 

If you opt for public transport or if you work out of home on some days, then it could help save a lot of money not just on gas but on insurance also.  As far as the safe driver part is concerned, it will depend on those drivers who are covered by the policy.

Teenagers will automatically face higher rates due to the perceived risk but could save a lot of money if they can prove that they are careful drivers.

Given below are samples of some of the programs:

Mileage measurement

The low-mileage discount plan from GMAC Insurance is a version that is for owners of General Motors cars who have the OnStar service.  This service will help alert the operator to call 911 in case of an emergency.  It can also diagnose a vehicle’s mechanical problem remotely and report the actual miles driven by those subscribers who sign up for the insurance plan.  The discounts can be availed by driving less than 15,000 miles in a year, although there is no penalty if you exceed.

Mileage plus aggressive driving

With the Snapshot program you will have to plug in a device which is around the size of a garage door opener onto the car’s diagnostic port, below the dash and under the steering wheel.  Data is sent back by the gizmo for 30 days and after that Progressive will let you know based on the miles driven, driving habits, etc and you will know if you have qualified for the discount or not.

Mileage plus speed

As per Allstate’s DriveWise program the device installed will note the number of times you exceed 80 mph, hard braking, aggressive acceleration etc.  The rating on the premiums could get affected by this.