Progressive Corporation is testing a new program to help safe drivers save on their car insurance rates. Selected drivers volunteered to place small lego sized monitors in their car to allow Progressive to track things such as speed, starts and stops, and time of driving. Based on the additional variables Progressive believes they may be able to divide drivers into more precise channels to charge more precise insurance rates.
This is just a test to try to learn how to classify drivers. I do not
believe it is going to be something that they try to adopt widely any
time soon, as that could likely lead to a bunch of bad press from
privacy advocates.
I have to wonder if people are more inclined to drive safe because they know their driving is being tracked (and how that may skew this type of test)? Knowing how I drive, I probably would not be installing one of these. ;) The Sun Sentinal reports:
Gene Mahoney considers daredevil drivers a major culprit in the high
cost of auto insurance, and he doesn't want to pay for their
recklessness. So he recently agreed to install a feature in his 1997
Isuzu Rodeo that he hopes will cut his premiums: an electronic monitor
to record how far and fast he drives.
In six months, he'll transfer the monitor's data to his home
computer and send it electronically to his auto insurer, Progressive
Corp. Once he does, the company will provide an immediate $50 break on
his semiannual premium. The monitor eventually may earn Mahoney other
discounts, too.
