Insure Your Future

Insure Your Future

Auto Insurance Tracking Devices: What You Need To Know

by Sue Palmer

Taking advantage of auto insurance discounts offered by your carrier is a great way to save on your premium. And these days, more auto insurance companies are beginning to offer discounts for policyholders based on their driving habits. Using specialized tracking devices that literally plug into your car's on-board computer, your auto insurance company can reward you for your safe driving on a very personalized level.

Before you agree to place a tracking device in your car for insurance savings, though, you'll want to educate yourself on how these little devices work and what to expect from the process.

How Do They Work?

While different insurance companies may have different names for their tracking devices, they all work in roughly the same way. Once you opt into the program, your car insurance company will send you a small device in the mail. This device can be plugged into your car's on-board computer port. This is the same port that your mechanic uses to run diagnostics on your car when your "check engine" light or other warning light comes on.

Once you plug the device into your car, it will automatically begin transmitting information to your insurance company. In most cases, you'll be asked by your insurance company to keep the device plugged in for a few weeks before sending it back in and taking advantage of any additional discounts you may qualify for.

What Do They Track?

The exact data tracked by these devices can vary from one car insurance company to the next. However, your insurance carrier should be able to provide you with a detailed list of data that will be tracked and considered for your discount. Some examples of information that may be collected by these devices include the following:

  • emergency braking habits
  • vehicle speed
  • GPS location

How Much Can You Save?

The amount of money you can save will ultimately depend on your driving habits and your insurance company. However, it is estimated that the average savings for this type of discount are around 20%, depending on the company and your driving habits. Still, those savings can add up; if you're currently paying $100 per month and your insurance drops to $80 per month with this discount, that's $240 per year back in your pocket.

Ultimately, only you can decide whether opting into this kind of program is the right decision for you. One thing is for sure, though: auto insurance tracking devices can be a great way to save money on your policy premiums if you're a safe driver!

To learn more, contact an auto insurance company.


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Insure Your Future

Purchasing insurance — the right insurance — is one of the smartest things you will ever do. While there are definitely differences between homeowners, car, life, and health insurance policies, they all serve the same purpose when it comes down to it. Insurance protects you against financial ruin should a tragedy happen in your life. In the case of homeowners insurance, that tragedy could be a fire or a flood. In the case of life insurance, that tragedy would be your death. The more you learn about insurance, the better the decisions you'll make when purchasing it. So dive into the articles here, and start reading.