Save Money on Car Insurance Through GPS Tracking
29 Feb 2012If you’re a good driver, chances are you’re paying too much for your car insurance. With a traditional auto insurance policy, your premiums have very little with how you drive on a day-in day-out basis. That is, until you get a speeding ticket — or worse have an accident. Then, you’ll likely see a big fat increase in your premium.
For the most part, your automobile insurance premiums are based on statistics that includes your age, gender, where you live, and the type and age of the car you drive. If you car sits in the garage a lot or if you’ve been accident free for a period of time, you may get a discount, but you stand to save even more on your car insurance is you can get personalized premium discounts.
What may not be common knowledge — yet — is that some insurance companies offer steep discounts to drivers who use GPS tracking technology. Insurance companies are beginning to implement programs to measure your driving. From usage-based insurance to pay-as-you-drive (PAYD) to mile-based auto insurance, these insurance-based GPS tracking programs have a variety of names.
But regardless of the name, insurance companies like GPS trackers for several reasons. First, it’s an added incentive for you to drive more safely. GPS tracking technology enables tracking of how fast, how much, and how well you drive. It can also sense hard turns, hard breaks, and weaves in your driving. In return for this tracking, consumers stand to receive significantly lower rates on their car insurance.
According to Brookings Institute, approximately two third of households could have their automobile insurance premiums reduced by approximately 29 percent by participating in a pay-as-you-drive program with their insurance company.
In addition to monitoring how good of a driver you are, GPS tracking technology helps provide the insurance company — and you — with a safety measure. If you vehicle is stolen, a GPS tracker device can locate the vehicle, and help you recover it, including any valuables inside the vehicle.
While the low mileage discount has traditionally been given on the honor basis by insurance companies, thanks to GPS tracking technology, it may soon be a requirement to provide verification of low miles.
GPS vehicle tracking for cars not only helps people have a fatter wallet, but makes the nation’s highways and byways a whole lot safer.
