Auto Insurance Discounts For Driving Less
Let’s face it, driving is a part of our daily lives and the cost associated with it seems to be forever on the rise. Finding ways to curb those cost demands keeping a watchful eye on the price we pay to keep our vehicles on the road. Now there’s a new way to save money on our cars through our auto insurance; by keeping our cars in park more often and less in drive. Two companies, State Farm and Progressive have initiated programs that reward drivers for driving less.
State Farm, the nation’s leading auto insurer rolled out its discount program for drivers who keep their mileage low through a program called “Drive Safe and Save”. It is offered now in 14 states, including Florida, Pennsylvania, Michigan as well as Georgia, Alabama, Indiana, Minnesota, Utah and Washington. It was previously only offered in five states: California, Illinois, Colorado, Ohio and Texas.
Progressive Insurance’s program is also based on usage. Progressive is the nation’s 4th largest provider of auto insurance and their “Snap Shot” program started last year.
State Farm’s program offers discount from 5%-50% to customers who allow the company to track how much they drive. State Farm uses the OnStar feature in your car to calculate its information, so your vehicle must be equipped with OnStar. The discount would start at 5% for drivers who enroll in the program. A driver who drives a 1,000 miles a month (the national average) could receive a 10% discount. Drivers with even less mileage could receive a discount of up to 50%. While Progressive states you could save up to 30% off your present rate for enrolling in its program.
Progressive tracks more information than State Farm such as how many miles you drive, how often a driver hits the brakes and how often you drive between midnight and 4 a.m. It does not record how fast you drive or where you drive. The device does not contain any GPS technology. State farm only records the actual mileage a car is driven. It works by installing a small device that plugs into your car’s diagnostic port which is usually below the steering column. The device then automatically keeps track of your driving.
State Farm says all drivers who enroll will receive some sort of discount and it hopes that it will inspire drivers to drive less, which will have a positive impact on safety and congestion as well as the cost of vehicle ownership and the environment.
Those that are most likely to benefit from the discounts are retirees, families with a spare car they don’t use very much and people who travel for work and leave their car at the airport for much of the time. Getting the best deal on car insurance isn’t just about driving habits; it also requires research and staying current with the changing rates and discounts insurers have to offer. Check to see if you can lower your cost when it’s time to renew your auto insurance by shopping online. It could save you money.
The programs are offered on a volunteer basis and customers can opt out whenever they like. State Farm states that the program will never cause a customer’s rate to increase due to their mileage being tracked. So drive safe and drive smart; this is a program certainly worth looking into.