zzdcar
Home
/
Reviews
/
Buying
/
How You'll Trade Your Privacy For Cheaper Car Insurance
How You'll Trade Your Privacy For Cheaper Car Insurance-November 2024
2024-02-19 EST 22:10:15

America’s auto insurers will push for new driver monitoring systems, such as in-car video cameras, as a way to cut costs and crashes. Who needs driverless cars when all drivers could soon get an electronic nanny?

In recent years insurers have started using various systems, including GM’s OnStar, to check the miles driven claimed by their customers. But upcoming new technologies go much further; gathering and reporting data about exactly how people drive.

Progressive Insurance already has about 100,000 customers signed up for its Snapshot (formerly known as MyDrive) device. It’s a dongle that plugs into a vehicle’s diagnostic port, collecting data about stops, speed and driving time for at least 30 days while wirelessly reporting that data back to Progressive. Drivers who meet Progressive’s standards can qualify for a 25%t to 30% discount.

Progressive’s program is voluntary; hoon-prone drivers can check their results online, and if they’re not getting a discount, they can opt out. (In some states, Progressive can use the data to raise rates, but says opting out drops the increase.) After six months of monitoring, Progressive says the discount becomes permanent — at least until they decide that they want the policy to change, at which point Progressive may want another Snapshot.

Today, Progressive offers the program in 24 states, but will add another 15 states in the next several months, and it plans a nationwide ad campaign for the service early next year.

There’s more than one way to play virtual back-seat driver. Starting Jan. 1, , a boon to California-based DriveCam, which has 150,000 users among commercial truck drivers and parents of teen-age drivers so far. It’s system records video clips of the driver and front of the vehicle just before and after a crash along with data about the car’s movement, and is already frequently used to determine in a crash. In 17 states parents can get the $900 system for free through an And unlike Snapshot, which requires a data port that’s not found in older models, DriveCam can be installed in any kind of vehicle.

Such systems have caught on faster in Europe, but experts inside and outside the insurance industry expect so-called behavior-based policies to become standard within a decade. If monitors reduce crashes among business fleets, it’s easy to imagine how attractive they would be to banks and finance companies when writing car loans or leases. As one Allstate exec said at a “This innovation seems cutting-edge today, but in the future it will be a given, just like air bags and seatbelts.”

The difference? The cost and benefits of air bags and seat belts belonged with the car’s owner, who didn’t have to surrender any privacy for them. The typical American driver pays roughy $1,000 a year for car insurance, and rates have been rising faster than inflation in the past year. Discounts are nice, but insurers should clearly show just how much these nannies will save them and how much of those savings go back to customers. They also should show the customers exactly what data they’re taking, when they’re taking it and what precisely they’ll be doing with it. If they want to peer over our shoulders, we should be able to do the same. (H/T to Joe!)

More on auto insurance from G/O Media’s partner:

Jalopnik is not involved in creating these articles but may receive a commission from purchases through its content.

Comments
Welcome to zzdcar comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Buying
Which One Of You Suckers Is Going To Pay Over $32,000 For A 25-Year-Old Toyota 4Runner
Which One Of You Suckers Is Going To Pay Over $32,000 For A 25-Year-Old Toyota 4Runner
The (and Tacoma) have a death grip on used values. It’s been this way for years. Go ahead, go try and buy any TRD trim that’s a couple of years old; it’ll cost you as much as a new one — not that you could buy a new one...
Nov 18, 2024
At $18,500, Would You Lean Toward Buying This 2022 Ford Mustang?
At $18,500, Would You Lean Toward Buying This 2022 Ford Mustang?
Today’s Mustang is being sold by a towing yard, which means it’s probably a lien sale. Let’s see if this clean title convertible is priced to put a new buyer on the hook. The general consensus on last Friday’s was that it would be the perfect car for someone...
Nov 18, 2024
At $5,900, Is This 1984 Nissan 720 4X4 A Solid Deal?
At $5,900, Is This 1984 Nissan 720 4X4 A Solid Deal?
According to its seller, today’s Nissan 4X4 shows “pride of ownership.” Let’s see if it would take swallowing one’s pride to pay its asking price. Opinions were split on how well the design of yesterday’s has held up over the years. Some of you commented that the design still...
Nov 18, 2024
At $950, Would You Go All-In On This 1984 Plymouth Colt GTS Turbo Project?
At $950, Would You Go All-In On This 1984 Plymouth Colt GTS Turbo Project?
One of the calling cards of today’s Plymouth Colt is its “Twin Stick” overdrive gear change, which gives the car eight speeds going forward and two in reverse. Let’s see if this project car has anything else to offer. Just as Goldilocks discovered when appropriating Papa Bear’s lifestyle and...
Nov 18, 2024
At $8,600, Would You Go Topless In This 1994 Cadillac Eldorado?
At $8,600, Would You Go Topless In This 1994 Cadillac Eldorado?
The seller of today’s Caddy claims they should be selling it at auction but says who’s got time for that? Let’s see if we have the time for this custom convertible at its non-auction price. Many of you agreed that the $950 asked for yesterday’s was “chump change.” Even...
Nov 18, 2024
Someone Willingly Paid $16,000 For A Maserati Ghibli On Cars & Bids. Don’t Make The Same Mistake
Someone Willingly Paid $16,000 For A Maserati Ghibli On Cars & Bids. Don’t Make The Same Mistake
Let’s cut right to the chase: buying a is not a good idea unless you have deep enough pockets for the upkeep. For those not in the know, they’re sirens. They draw you in with their premium Italian image and sweet songs of and then go in for the...
Nov 18, 2024
Copyright 2023-2024 - www.zzdcar.com All Rights Reserved