Are you one of the 70 million drivers who could be paying less for you car insurance each year because of your driving habits? According to the Insurance Journal article “70 Million Drivers Missing Out on Car Insurance Savings: Insurer,” having your driving habits monitored could save you some money. Our previous blog mentioned Progressive’s new Snapshot driving program, one of the first programs available. Usage based car insurance programs give discounts for people who drive less often, are safer, and drive during the safest times of the day. A recent phone study showed that 50% of people drive less than 12,000 miles each year, 84% of drivers believe they are cautious or defensive while driving, and 88% of drivers are hardly ever on the road between midnight and 4:00 am.
Progressive estimates that with all three of those factors taken into consideration, close to 40% of drivers could get a discount on their car insurance. That is 70 million drivers that could be paying hundreds less for their car insurance each year, up to 30% less. Safeco, Travelers and many other companies are also offering these usage based discount options. Some estimates say as many as 60% of car insurance companies have the program in place. In Progressive’s research, they determined that 63% of drivers would be willing to put a device in their car, in the event that it could lead to some savings. They also estimate that drivers using their Snapshot system are less likely to get into a car accident and less likely to receive a ticket for a moving violation.
