Car insurance pay-As-You-Go-whether this is good-to-go for you?
Auto insurance company know that a pay-as-you-go can present an interesting equation for the rider: drive safely and drive a few miles is equal to the potential savings.
Progressive footage, perhaps the most known PAYG and most widely advertised, drape the promise of up to 30 percent discounts for premium. The mascot for the Ubiquitous “Flo” gushes about a Snapshot in a TV ad airing frequently (this one, very up close and personal with Flo).
State Farm also offers PAYG very much promoted, called In-Drive. Company officials say the In-Drive can reduce the cost of coverage to as much as 50 percent for some drivers.
Progressive and state farm are not alone in the arena of PAYG. Allstate, The Hartford and Travelers, among others, have similar programs, so check with your operator or your shop if you feel qualified.
How Does Insurance Pay-As-You-Go?
The workings of a Snapshot is typical of the program: you attach the PAYG Snapshot device to your car’s diagnostic port (most automobiles beginning in 1996 had it) and keep track of the time and the speed of the vehicle, how many miles driven and how often the brakes hard. The transmitter also tattles to Progressive if it has been disconnected.
Richard Hutchinson, general manager of usage-based insurance company, said that the Snapshot gives tribute to the conscientious driver does not collect miles. He added that more savings could be possible if your car still parked at the time of the accident the peak hours (between midnight and 4 a.m.) device that is free, must be installed at least 30 days, with the option to let it more old to six months) for a more complete automotive profile and perhaps even greater discounts.
“This is a purely voluntary program, so You do not need to do this if you don’t want it,” Hutchinson said, adding that the discount can reach 30 percent.
In-Drive, which also has a plug-in device that monitors the driving habits of the same, have greater potential, according to Kip Diggs, a spokesman for State Farm. He claimed the deduction to 50 percent that may occur.
Missy Lundberg, a spokesman for State Farm, said that the more you immediately receive a 10 percent discount for the premium payment, medical liability, collision and comprehensive coverage. He added that other 20 percent might be deducted from your payment if you don’t reach over 12,000 miles per year, the national average.
Additional discounts will come from time to time, depending on how consistently you drive safely and when driving, says Lundberg. Customers can track their performance, and progress in the discount web site State Farm. Snapshot users could do the same thing.
The snapshot has no monthly fees, but In-Drive is not. Diggs said that the package is free for the first six months after activation fee $10. Then, there is a monthly fee of $5 to $15, with costs for the service OnStar, which is bundled into the package In-Drive.
OnStar delivers one emergency, roadside assistance, stolen vehicle location, vehicle diagnostic warnings, reminders and alerts, mapping care speed.
The must-know details About Car insurance plans pay-As-You-Go
Although Progressive, State Farm and other insurance companies often emphasize that the rates you should not go up so they have a driver profile, there are exceptions. For example, if you live in Rhode Island and select Snapshot, Progressive’s web site noted that the rates you get jumped to 9 percent if you do not meet the requirements of the program (for more, see “3 things you don’t know about salary-as-you-go insurance “).
Consumer advocates also worry that privacy can be compromised if the driver’s insurance company share details with third parties.
Sharon Goott Nissim, privacy counsel consumers to Electronic Privacy Information Center (EPIC), said the risk is that such information can be used in ads targeted at motorists or shared with police vehicles during the investigation of the accident.
“There is the question of how data collection is maintained,” he explained. “We don’t know how companies handle this data – they can change data into your score (driving) and then dump the raw data as they use it to update the score.”
He continued, “but they could disclose such data to commercial partners, particularly location data, which is valuable to advertisers. In addition, law enforcement may be looking for data-and the insurance company may be willing to “give it away.
State Farm representatives pointed to the company’s web site to get information privacy. This site offers a variety of details, including that “we do not allow those who are doing business on our behalf to use our customer information for their own marketing purposes.”
Progressive site offering: “we will not share data with third-party Snapshot unless required to provide a service to Your insurance policy, prevent fraud, conduct research or comply with the law. We also will not use the data Snapshot for completing a claim unless you or the registered owner of the vehicle gave us permission”.
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