Car Insurance Tracking Discount
You’ve probably seen the ads insurance companies put out promoting “Safe Driving” and offering discounts for it. It seems like a great idea in the commercial… as it always does. However, let’s take a deeper look at the pros and cons of the car insurance tracking discount.
How It Works
Most insurance companies that offer this discount nowadays will simply have you download an app on your smartphone that tracks your driving. The other way they track your driving is through an actual device you put in your car.
Insurance companies track your speed, turning, braking, how fast/slow you go over bumps, and even the time of day/night you’re driving. They then determine how safe of a driver you are and either apply a discount to your policy or surcharge you.
Yes, this promotion is not all unicorns and rainbows. Insurance companies will increase your rates if they deem your driving is unsafe.
Pros
Added Discount
Most carriers that offer this promotion will give you a small discount right from the start just for signing up for the program. From that point on, your driving will determine whether the carrier will apply more of a discount, or if that discount will disappear.
If you consider yourself a “safe driver” this program could be the right fit for you. Obeying speed limits, accelerating slowly, easing into a stop, among other things, are what make up a safe driver and increases your discount.
Motivation to Drive Safe
Whether you need the motivation for yourself or your teen who just got their license, enrolling in this program provides motivation to drive safer than you normally do.
It is also a good way to monitor your teen’s driving habits if parents want to know how safe of a driver your child is. Call it motivation or paranoia, this program definitely forces you to take things a little slower on the road.
Cons
Surcharge
Signing up for an insurance tracking discount seems like a great idea for those of you who want to save a few extra bucks. Until you realize you aren’t as safe of a driver you thought you were.
Even things that are out of your control such as going over a sizable pothole, having to hit the brakes hard because of yellow light, or even braking quickly after being cut off are all things that can hurt your discount.
The biggest downfall of tracking discounts is when it backfires on you. You do one of the things listed above a few too many times and you’re left with a larger bill than you’d hoped.
Forcing You to Drive a Certain Way
We’ve all been there. You overslept and now you’re running late for work. You rush to get ready, sprint to your car, you pull out of your driveway when you realize, you have to drive the speed limit or it could cost you money.
Not that any clients of CRG drive any faster than the speed limit, but there are certain situations where you’re compelled to drive slightly faster (but responsibly). Having an insurance tracker forces you to drive a certain way, and at certain times that can be a big inconvenience.
Discounts Without this Program
Insurance companies already reward safe driving. If you have a clean driving record and no accidents, insurance companies will look at you very favorably and provide a better price on your policy.
*It is important to note that not all insurance companies offer this type of discount. The insurance world is ever-changing, and we could see more companies offer these programs, or we may see the industry turn away. There are varying opinions on whether this type of program is worth signing up for or not.
At the end of the day, you should know that your CRG agent is looking at your specific situation, and providing the proper insurance policy that balances coverage and discounts.
They provide a tailor-made policy for you to make sure all of your insurance needs are being met. While saving money is attractive, keeping you and your family protected is most important.
