FUTURE OF CAR INSURANCE

Submitted by Anonymous (not verified) on Thu, 12/20/2007 - 18:19

DID YOU KNOW THAT THE INSURANCE COMPANIES ARE LOOKING INTO RATING YOUR AUTO INSURANCE BY HOW MILES YOU DRIVE? The future of auto insurance will be changing and the insurance companny will install a device in your car that tells how many miles u drive each month and bill you by that so if you drove very little your insurance would be cheap and if u drove alot it would cost you a pretty penny

Posted: 20 Dec 2007 08:54 Post Subject:

I would think they would have to have your permission to install anything on your car. That just don't sound right to me. I could see them offering lower milage discount but for the whole industry to go to this, don't see it happening, could be wrong though. what do you insurance gurus think about this?

Posted: 21 Dec 2007 07:31 Post Subject: auto insurance premium calculator.

Hi Chuck!

I agree with dreamer at this point. :) The automobile insurance companies are not planning to install anything in your car without permission.So don't worry about about it..:(

While determining your premium rate the auto insurance companies analyzes your overall chances in filing a claim against the insurance. This they mainly do based on some important factors. More the risk in claiming your insurance, higher would be your premium amount.

Amongst many other factors that determines your premium rate, the number of mileage you drive your car is also another distinct factor. Some companies offer good discount, if you have driven your car for low mileage.


Thereby, to measure this mileage some means are being discovered.The telematic system is a system that monitors the driving performance of a driver.


Currently the Norwich Union has introduced a system which is a combination of global positioning system (GPS) and cell phone in a car which is known as "Pay as You Drive" .

It's purpose is to determine the performance of the driver as well as the amount of risk that the insurance community might have to take. Based on this the insurance companies offers good discount rate. It has been assessed that in 2005 after the introduction of this system there was a 20% fall in the accident rate.

The Progressive Corporation has also introduced a telematic auto insurance for the residents of Minnesota known as TripSenseTM .

This is mainly a black box that you would have to plug into your car's OBD-II port. This way the the box would monitor
1.the mileage driven
2.the speed at which the vehicle was running
3.time
4.other relevant information.

After one month, by connecting the box in your home computer, you can monitor yourself if you can avail a discount on your auto insurance.

If you feel that you are eligible, you may download the information and show it to the insurance company to get the discount. I believe you are speaking about this system..Chuck..:D

None of the systems are a compulsion, it is on you if you want to avail the offer.. to determine your discount rate.:)

Posted: 21 Dec 2007 08:53 Post Subject: simple logic

DID YOU KNOW THAT THE INSURANCE COMPANIES ARE LOOKING INTO RATING YOUR AUTO INSURANCE BY HOW MILES YOU DRIVE?



Actually, if we think logically about their reason we'd see - the more distance we cover with our car...the more our car gets prone to accidents...more would be the risks to be covered by the carrier...& so on.

Posted: 21 Dec 2007 11:38 Post Subject:

DID YOU KNOW THAT THE INSURANCE COMPANIES ARE LOOKING INTO RATING YOUR AUTO INSURANCE BY HOW MILES YOU DRIVE



They already do to some degree...I pay a lesser prem. because my vehicles are rated for less than 10k per year...Now they haven't checked up on it...(wouldn't care if they did)...but all companies/agents ask when writing a policy how many miles do you drive right? (my company does anyway)....personally I don't think it's too bad of an idea.

Posted: 21 Dec 2007 11:41 Post Subject:

I think you are referring to GMAC offering a discount if _On-star_ users allowed GMAC to track how many miles they drove.

Keep in mind that On-Star is a _GM_ product and GM used to own GMAC and still owns most of their loans (basically, GM still have their hands on GMAC).

So insurance companies are not looking to _install_ tracking systems in vehicles. I also can't see many people agreeing to this. GMAC wants to do it in order to rate the policy based on a person's mileage. If a person drives a lot, they would just refuse the "discounted" plan. If they drove seldom, they could elect to have the information recorded. I suspect that GMAC would offer higher rates to everyone who did not elect for the "discounted" plan in order for the information to be useful.

But in all, I see this as a failed experiment even before it starts. I think other carriers looked into this years ago (Progressive?) and each one lost interest.

Posted: 23 Dec 2007 02:54 Post Subject:

But in all, I see this as a failed experiment even before it starts. I think other carriers looked into this years ago (Progressive?) and each one lost interest.



Progressive did introduce this program and it's alive and well according to their website. The name of it is TripSense. It's not widely available currently with only three states offering it. Minnesota was first, which was where it was piloted in 2004 and Progressive introduced it to two other states in mid January this year, Michigan and Oregon.

The way it works is you plug a computer chip called a TripSensor into the On-Board-Diagnostic port on your dashboard. It records the necessary information and you in turn periodically upload the information from it via your home computer to their databases to earn your discounted rate.

Doing so is certainly not forced upon you. It clearly states that it's your choice whether you upload the information or not but necessary to keep getting your discounts. They don't "make" you do it if you decide for whatever reason not to. The voluntary nature of uploading is stressed (although I can't imagine why you'd want to participate in this type of program if you were unwilling to share that!).

Time will tell whether TripSense will catch the public's interest as it's introduced in other states but according to Progressive, drivers can save up to a quarter off their current premium rates.

It's something to think about anyway. :)

Posted: 23 Dec 2007 11:03 Post Subject:

It would be really ironic if they denied a claim because you didn't declare the mileometer or whatever it's called.

It's a fairly good idea, and it can do other things as well. If the data gets transmitted automatically, and your car gets stolen, they can say that it's a 20-mile-drive from your house.

Although, increasing the rate based on mileage, I'd think it would be the other way round. If you've driven 300,000 miles without an accident, you must be one good driver.

My opinions on this are rather varied, but all in all, it's an excellent idea, as long as it remains voluntary.

Posted: 03 Jan 2008 05:58 Post Subject:

Why do insurance companies ask if you drive this vehicle to work or not? Is it cheaper if you do or not.

Posted: 04 Jan 2008 01:26 Post Subject:

This is kinda interesting. There are also programs out there in some areas for teenage drivers. You volunteer for the program and they install a camera(watching the driver) and other sensor information. When there is sudden acceleration or sudden deceleration they will email the parent the time/date and a copy of the video. Apparently it has been helpful in getting teens to stop some bad habits. And of course installing the system entitles you to a discount.

Tripsense sounds like a more adult less invasive version. Personally I wouldn't have an issue using this system.

Posted: 06 Jan 2008 02:24 Post Subject:

I would think that it would cost them a ton of money to put these devices on every vehicle that they insure and a ton of people go their entire lives with out ever filing a claim, so I just don't see how this would be a smart or good financial move for the insurance industry. I mean if you think about it, the higher the mileage, the less the vehicle is worth and they check out this information especially on a total loss, it is part of the calculation of value. Your mileage is taken yearly on your vehicle yearly when you renew your plates and then go for inspection, if you pay attention this information is documented before the inspection sticker goes on the vehicle. I don't think the insurance companies will invest in something like this, just sounds goofy. I could see if you had a lot of claims and this would be a way to offer you insurance if you agreed to be monitored, I don't know that I would agree to this, they can get the information off the state when I report it once a year, or simply ask me, they can verify if they want, I have no reason to lie, but I would not want a black box hooked up to my vehicle.

Posted: 06 Jan 2008 03:12 Post Subject:

I agree it would possibly be cost preventative. The way it would robably work is you have to qualify for the program and then opt in to the program. It'll be hard to say until the programs take off better and become more pervasive.

Posted: 06 Jan 2008 03:58 Post Subject:

Like how far in the future do you see this becoming a mandated deal, or do you think it will come as a mandate? who will decide this, the state or the companies?

Posted: 06 Jan 2008 11:03 Post Subject:

I don't think this country would allow this to be a mandate...now ins carriers could make it VERY attactive! (lower rates)

Posted: 06 Jan 2008 05:30 Post Subject:

I believe it is to invasive to ever be considered mandatory. An incentive for lower premiums definitely but never mandatory. Unless we ever get into like the I-robot situation where everything is monitored. And then we would have a chip implanted in us so that they can monitor our health and our premiums will be determined by our cholestorol and blood pressure count on a daily basis kinda ala the Island. Oh wait thats already being developed but not tied to insurance. And theres the chip for maintaining our medical records with us.

Posted: 09 Jan 2008 12:08 Post Subject:

I could see it being a voluntary program as you stated Lori, but I don't know that I would want it in my vehicles, I don't like to feel like big brother is watching me and that is what I think this would be like for me. I don't think I am a bad driver and My record shows that so give me the discounts there.

I would hate to imagine a device that they could download your information and potentially raise your rates, like you were speeding on this day, this day and this day, but you were not caught, however the potential of an accident was still there. I just think it leans toward the invasion of privacy on a good driver.

I could see it being used to lower the rates on a bad driver, an incentive maybe, but completely volunteer, can not see this being mandate, just my thoughts.

Posted: 09 Jan 2008 12:29 Post Subject:

Agreed...man though are my kids ever lucky this wasn't available when they were driving and living at home...I'd have had that puppy in a new york minute on my kids cars!!!

Posted: 10 Jan 2008 06:39 Post Subject:

I know if I have custody of my kids when they turn 16 I am getting it. Of course I may not let them drive till they are 21, my son scares me the way he drives on the video games.

Posted: 13 Jan 2008 12:48 Post Subject:

LOL, avengerki, do you think he will really drive like that on the road, I hope not. He is probably trying to win the video game and has to drive fast. Hopefully, they don't carry these games over to the roadway, he won't have the license long if he does. I wish you luck with this, LOL. I am sure he will be fine, you are the boss, you decide when and if he gets a license.

Posted: 13 Jan 2008 01:19 Post Subject:

I know that video games have been a big source of trouble for everyone because kids are getting to be obese sitting around playing them or watching television instead of doing more outside activities. I think it depends on the game there are so many these days that make you get up off your rear end and move. There are the dance and sports games now that you actually go through the motions of playing the games.

As far as driving, I would think the game would increase eye/hand cooridination. Don't know about the speed though, I would think that if you spend the time in the passengers seat and tell the teen that they are in your car and on your insurance and that you can pull that at any time, along with constant monitoring of how the kid drives, you can have some control over it. You can play police officer in your own home, it is your car, your insurance. Always, always be serious about how their driving affects others out there, they have the potential to cause life altering injuries to themselves and to others.

I have a young child, I would hope that the relationship that we are building now will have some impact on the relationship that we have later in life. I try to instill the importance of being responsible now, it all starts young, you can not just push a button later in life and expect a child to respond, they depend on you for guidance and the rest of society depends on you to do a good job with your child, after all everyone has to deal with what I send out the door at 16 years old. I just hope what I do know affects people in a good way later and helps her make good decisions.

Posted: 14 Jan 2008 09:55 Post Subject:

You can play police officer in your own home, it is your car, your insurance

Boy and I sure did, always told my kids, ''i have eyes all over this city and they WILL rat you out in a second'', one of my rules was that if EVER ANYONE in their vehicle was without a seat belt on they lost their car for a month...happened one time, a passenger (punk kid) refused to put it on.....well the boy lost his truck for a month, and the ''it wasn't my fault, he wouldn't put it on'' didn't work with me....told him, then you should've pulled over and told him to get out, because he has cost you your truck for a month'' never had that argument again...


it all starts young, you can not just push a button later in life and expect a child to respond

Truer words have never been spoken...drives me insane, when some parent says they 'can't control their two or three year old'' or let them run a muck...what do you think will happen when they are 15-17? If you don't have control at 2 you ain't gonna have it at 15 believe you me!

I just hope what I do know affects people in a good way later and helps her make good decisions.

It certainly will...it all starts in the craddle (well not the craddle but you get the picture)

Posted: 14 Jan 2008 11:21 Post Subject:

Lori and goodnatured,

You sure can tell that you guys are parents, LOL and sounds like you both are pretty good parents, wish there were more like you around.

Lori,

When people say that they can not control a three year old is a lame excuse for parenting, I don't think it is a god given right to have children, some people just are not cut out to be parents and what they fail to think about is like goodnatured says, the rest of the world has to deal with the monster that these type of parents are created. Don't you just want to slap the poop out of these people. LOL REALLY!

Posted: 15 Jan 2008 12:59 Post Subject:

Yes I do want to smack 'em...and the ones that really make me crazy are the parents (mama's usually) that set and cry about how bad 'their' life sucks because their kids are such a mess....well, get up off your ample butt and stoll to the nearest mirror and have a look at what cause it ! In most cases, have to say there are a few albeit rare times when a kid is brought up by wonderful parents and just goes bad, but most of the time it's lazy parenting! IMO, it's waaaaaaaaaaay easier to set on the couch and yell at a kid, rather than get up and go ''teach'' them something.....geeeeeeeeeeze I've got to quit, man I could (and did kinda) go on for days and days about my very strong opinions on child rearing! ha ha

Posted: 21 Jan 2008 07:52 Post Subject:

i never heard of putting anything on your car for miles but its not new about the miles they always ask if you drive for work or pleasure and how many miles you put on a year.

Posted: 22 Jan 2008 03:00 Post Subject:

Yeah, they do ask about mileage and if it is a pleasure vehicle, I think this is too much big brother over my shoulder, the more I think about it, the more I think it is an invasion of privacy.

I can see it for bad or high risk drivers, but not for those of us with good driving records.

Gotcha Lori on the lazy parenting, I think they could learn a little bit about parenting in our pub section, there are some pretty good conversations going on there right now about time and kids.

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