Tracking Driving to Reduce Auto Insurance Premiums Grows More Popular

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  • In recent years, auto insurance premiums have risen relatively quickly, and that change has left many consumers worried about how they would be able to reduce their costs going forward. Perhaps one of the biggest changes to come along in this regard during that time is the ability of drivers to sign up for tracking devices that monitor how they operate their vehicles at all times. And now, it seems this option is becoming quite popular. As such, it might be wise for insurance agents whose companies offer this kind of option to their policyholders to highlight the benefits of doing so, which may cut their costs and therefore potentially increase satisfaction.

    Many major insurers now offer drivers the ability to track their habits in exchange for a little less privacy and potentially significantly reduced insurance costs, according to a report from the New York Times. Without signing up, consumers might face other ways for companies to set their standards, such as their personally identifying details or even credit history, which might have little to do with their actual driving.

    Why can these be helpful for both parties?
    These trackers, which can typically be installed with ease in just about any car made in the last decade or so, provide insurers with lots of information about how a customer drives, such as how they accelerate and brake, how hard they make turns, how fast they drive, and even when they do so. That data is also sent to consumers in the form of a kind of report card, which can then inform better habits in the future if, for example, the person tends to slam on the brakes too often, or drives a little too fast. In the end, both parties might find the altered behaviors more than a little beneficial.

    Insurance agents who can do as much as possible to make sure consumers are satisfied with their auto insurance coverage – which may include finding them new ways to reduce their ongoing costs – are those who will typically have the most success in retaining old clients and attracting new ones. Interestingly, though, data shows that consumers are more interested in an agent’s ability to provide them with high-quality customer service, than with simply finding lower premiums. Therefore, striking a balance between these two issues can be key to any agent’s ongoing success.