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Auto Insurance Tracking Devices

Auto Insurance Tracking Devices

Usage Based Tracking Systems

Along with the typical discounts that are available to help you save on your auto insurance, many insurance companies are starting to offer usage-based insurance. Instead of using the traditional risk assessment, these discounts will rely on your real driving habits. There are two basics ways in which usage based discounts can work, including:

  • Good driving habits – with the installation of a “black box” in your car, certain driving habits and information will be sent to your auto insurance provider, as well as the number of miles that you drive. It will be able to tell your insurance company about the speed that you drive, as well as if you drive at high-risk times.
  • Pay by the mile – these discounts are based solely off the number of miles that you drive each day, and no other factors. They are used like a minute based cell phone plan.

These tracking devices have many pros and cons, including:

Pros:

  • Less expensive premiums – just like with any other discount that you take advantage of, these discounts will help you save money on your auto insurance rates.
  • Better driving habits – when you know that you are being watched, you are less likely to engage in risky driving habits.

Cons:

  • Overage charges – with the pay by the mile option, you may have to face heavy overage charges if you drive more than you say you will.
  • Installation costs and fees – certain programs will come with fees to have the systems installed in your vehicle, and a monthly fee to maintain the system.

For all of your auto insurance needs, contact the Insurance Agency of Dean Davis in Austin, Texas. We will work with you to ensure that you have the right amount of coverage, all at the right price.

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