Oct 19
A Progressive Auto Insurance Reduction Scheme
Progressive, which sells auto insurance directly to consumers over the phone and on the Internet, is offering Michigan drivers a program that will allow them to pay lower premiums by driving less and during non-peak hours. TripSense, a program started in Minnesota in 2004 that now has 6,000 participants, can save drivers up to 25 percent off their premium depending upon how much and when they drive, according to the Progressive Group of Insurance Companies.
However there’s a catch: Drivers must install on their cars to record mileage. The mileage log also collects information about vehicle speed, acceleration and braking.
Progressive says that information is not used to calculate the insurance premiums, but to better understand what causes accidents. Nevertheless, consumer privacy advocates question the motives of a car insurance company providing a monitoring device — on a voluntary basis — that collects more than just the car’s mileage.
The average discount among TripSense customers in Minnesota is 11 percent to 12 percent annually, according to Progressive. The company’s product manager for Michigan said that other than mileage and time of day the vehicle is in use, the other data will not be used to calculate insurance premiums. And he said the data won’t be sold to a third party for marketing purposes.
“Potentially, consumers can be concerned about all the data we’re collecting, so that’s why the program is optional. But some people want to be rewarded for driving less. The only way you can do this is by providing verified mileage.”
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October 23rd, 2007 at 11:14 am
Get a freecar insurance quote with this service.
October 23rd, 2007 at 11:15 am
I saw this over at http://www.lowauto.com getting a quote today.
October 26th, 2007 at 12:19 am
No WAY. Lower insurance rates are one thing, but doesn\’t this smack of Big Brother to anyone else? This \”TripSense\” kind of thing could lead to insurance companies having far too much information about their customers. I\’m uncomfortable with it.
Jerry
http://www.leads4insurance.com
November 27th, 2007 at 2:17 am
Why not? It works well and has been proven in places line singapore and the UK where even road tax is reduced if you agree to only drive a certain few KMs a month or only during weekends!