Usage-based Auto Insurance

[OKCHunter]

My monthly insurance costs (bundled home and auto) and family of 4 drivers has gone up over $200 / month during the past 2 years. I started looking into Usage-based Auto Insurance with State Farm which claims up to a 30% discount for safe drivers. The program collects data on the driving habits (speeding, hard breaking, hard cornering, etc.) for each vehicle enrolled. Anyone here using this type of program? If so, what has been your experience?

It’s obvious a person is giving up a lot of privacy with this type of program but I’m trying to weigh the advantages / disadvantages for a household of generally safe drivers.

 

[HarryBear]

I don't know about going this route.
I'd personally call other insurance companies first, last resort would be this.

 

[38Super]

Based on my recent experience (in the last 6 months) with State Farm, I would stay FAR, FAR way from this company. They were good until it came to pay out on a roof claim. I pay you for a service and then when you try to deny me what I paid for PISSES me OFF to no end. I will be seeking a new carrier in the coming weeks.
Regarding the "usage" based coverage, most other carriers do the same thing. Let them put a chip in your car and they track your driving habits.

 

[Chief Sapulpa]

Insurance companies are not in the risk business but in the not to lose business.

 

[Buddhaman]

It seems like a reasonable thing to drive safe and save money. But what is “safe” to State Farm? Is a single hard braking safe but two higher risk? If you give it some gas is that excessive acceleration? You’re monitored for a period of time and you could cheat it by being very careful during that time. I’d forget it was attached after a week or two and likely end up with a worse rate despite a clean driving record.

 

[OKCHunter]

It seems like a reasonable thing to drive safe and save money. But what is “safe” to State Farm? Is a single hard braking safe but two higher risk? If you give it some gas is that excessive acceleration? You’re monitored for a period of time and you could cheat it by being very careful during that time. I’d forget it was attached after a week or two and likely end up with a worse rate despite a clean driving record.

I hear you. I typically drive the speed limit, and don’t brake or accelerate hard. But, when driving the surface roads in country areas, with stops signs every mile, I’m sure I would take a hit for not coming to a complete at stop at the signs.

 

[gl55]

When I switched to AAA probably 8-10 years ago they had us (me and wife) drive with one of those things plugged into the ALDA port for 30 days then mail them in. Then never again. AAA actually lowered our auto premium a little last year. Same vehicles. Also bundled with HO.

 

[retrieverman]

My monthly insurance costs (bundled home and auto) and family of 4 drivers has gone up over $200 / month during the past 2 years. I started looking into Usage-based Auto Insurance with State Farm which claims up to a 30% discount for safe drivers. The program collects data on the driving habits (speeding, hard breaking, hard cornering, etc.) for each vehicle enrolled. Anyone here using this type of program? If so, what has been your experience?

It’s obvious a person is giving up a lot of privacy with this type of program but I’m trying to weigh the advantages / disadvantages for a household of generally safe drivers.

Personally, I don’t trust anyone especially an insurance company to not try to screw me some way with the “data” they want, so there’s no way I’d go along with that deal.

 

[Catt57]

I don't have a car that reports those kind of things.

 

[OKCHunter]

I don't have a car that reports those kind of things.

With State Farm it’s a small device mounted in the vehicle and paired with your smart phone.