http://www.dailyfinance.com/story/insurance/can-pay-as-you-go-auto-insurance-save-you-money/19898737/?icid=sphere_copyright
People should only pay for the insurance coverage that they actually use. In other words, drivers who drive less would pay less for insurance.
Consumer groups and some economists have demanded this type of coverage for years, and their lobbying has paid off. Last month, Progressive Insurance began advertising its Snap Shot Discount pay-as-you-go product nationally. Its available in 32 states.. State Farm and Allstate also offer similar deals in a handful of states.
Texas spearheaded the movement: It was the first state to allow such coverage back in 2001, while California -- a state that often begins auto trends -- only began permitting it in December.
Big Discounts for More Data
The industry argues that these policies can save consumers a bundle. Progressive estimates potential savings of $150 a year, for example. "Pay-as-you-go insurance can be an excellent choice for people who drive very few miles during the week," Chris Kissell, managing editor of Insurance.com, writes in an email.
But experts caution that pay-per-mile policies aren't right for everyone. For one thing, to determine eligibility, insurers typically install a device that tracks customers' driving habits for some time -- usually about six months, Kissell says. "Some drivers may not be comfortable with this and may see it as an invasion of privacy," he writes.
Some of the programs also have strict rules about when customers can drive and may disqualify customers from getting the discount if the tracking device shows that they often drive late at night, he adds.
Tuesday, April 5, 2011
Monday, April 4, 2011
System to track your driving habits could save lives
April 03, 2011|By Jeff Gelles, Inquirer Columnist
http://articles.philly.com/2011-04-03/business/29377339_1_mayfield-village-progressive-usage-based-insurance
Remember when you were learning to drive, perhaps from Mom, Dad, or an older sibling?
Chances are you were warned not to follow too close - "Don't tailgate!" - or to take other risks that might end with your slamming on the brakes to avert a crash. Your teacher may have also cautioned against driving in the wee hours, especially after the bars closed.
What if you could install an electronic monitor to see if you - or your children - were still heeding all that sage advice, and reward you if you were?
Some people might find it unsettling to have an electronic version of their older brother alongside them as they drive - even a little, uh, Big Brotherish.
But Progressive Insurance is betting that you'll welcome the chance to show how well you learned - especially if you can earn discounts of up to 30 percent off your auto-insurance premiums.
Last year, Progressive proposed bringing its "MyRate" plan to Pennsylvania, after introducing it two years earlier in New Jersey and offering pilot versions for more than a decade. The Ohio insurer withdrew the proposal after objections from Lance Haver, Philadelphia's director of consumer affairs, and from the state Insurance Department.
At the time, city and state officials said there were too many unanswered questions. But last week, Progressive introduced its new-and-state-approved version of usage-based insurance in Pennsylvania. Now called "Snapshot" and offered in 33 states, the Progressive program is also the subject of its first-ever national ad campaign.
"Flo," Progressive's energetically eccentric spokes-character, may be singing Snapshot's praises on TV, but Haver is still critical - concerned, in particular, about what could happen if Progressive ever changed a privacy policy that says the company won't sell data about policyholders' habits. I'll get back to that in a moment, after I explain how Snapshot works.
Using your car's computer, Snapshot will track a variety of data, including how far you drive, when you drive, and your speed.
http://articles.philly.com/2011-04-03/business/29377339_1_mayfield-village-progressive-usage-based-insurance
Remember when you were learning to drive, perhaps from Mom, Dad, or an older sibling?
Chances are you were warned not to follow too close - "Don't tailgate!" - or to take other risks that might end with your slamming on the brakes to avert a crash. Your teacher may have also cautioned against driving in the wee hours, especially after the bars closed.
What if you could install an electronic monitor to see if you - or your children - were still heeding all that sage advice, and reward you if you were?
Some people might find it unsettling to have an electronic version of their older brother alongside them as they drive - even a little, uh, Big Brotherish.
But Progressive Insurance is betting that you'll welcome the chance to show how well you learned - especially if you can earn discounts of up to 30 percent off your auto-insurance premiums.
Last year, Progressive proposed bringing its "MyRate" plan to Pennsylvania, after introducing it two years earlier in New Jersey and offering pilot versions for more than a decade. The Ohio insurer withdrew the proposal after objections from Lance Haver, Philadelphia's director of consumer affairs, and from the state Insurance Department.
At the time, city and state officials said there were too many unanswered questions. But last week, Progressive introduced its new-and-state-approved version of usage-based insurance in Pennsylvania. Now called "Snapshot" and offered in 33 states, the Progressive program is also the subject of its first-ever national ad campaign.
"Flo," Progressive's energetically eccentric spokes-character, may be singing Snapshot's praises on TV, but Haver is still critical - concerned, in particular, about what could happen if Progressive ever changed a privacy policy that says the company won't sell data about policyholders' habits. I'll get back to that in a moment, after I explain how Snapshot works.
Using your car's computer, Snapshot will track a variety of data, including how far you drive, when you drive, and your speed.
Progressive (USA) some customers save over 50% with Pay How You Drive insurance
Off the back of Progressive's Pay How You Drive insurance roll out online forums and discussion groups are full of happy customers sharing stories of their big savings
"I was amazed too! I just switched and did the name your price and got the snapshot. My ins went from $140.00 a month to 68.72 could not believe it! I only drive to bring my DD to school 2 days a week. Sooooo happy!"
https://www.mytotalmoneymakeover.com/modules/fusetalk3/forum/messageview.cfm?catid=9&threadid=329935
"I was amazed too! I just switched and did the name your price and got the snapshot. My ins went from $140.00 a month to 68.72 could not believe it! I only drive to bring my DD to school 2 days a week. Sooooo happy!"
https://www.mytotalmoneymakeover.com/modules/fusetalk3/forum/messageview.cfm?catid=9&threadid=329935
Sunday, April 3, 2011
Speeding drivers pay double premiums
January 26, 2010
Speeding drivers pay double premiums
http://www.insurancedaily.co.uk/2010/01/26/speeding-drivers-pay-double-premiums/
by David Masters
Story link: Speeding drivers pay double premiums
Drivers caught speeding pay an average of £100 extra on their car insurance, new research has discovered.
Getting caught out three times means paying up to double the amount on insurance premiums, moneysupermarket.com found.
A study by the price comparison site identified the UK’s worst speeding offenders.
Scotland, Swindon, and Sheffield were named as home to the worst speeding offenders in the country.
Men were found to be the most likely to speed, with the top ten places for the most speeding convictions all taken by men.
“Unfortunately he classic stereotype of a boy racer lives on,” said Steve Sweeney, moneysupermarket.com’s head of motor insurance.
“There are no female drivers anywhere near the top of the table in our analysis of speeding convictions and unfortunately this is reflected in the price of premiums for men when compared with women.”
The Institute of Advanced Motorists (IAM) said the insurance industry needs to do more to help young male drivers improve their driving skills.
“The industry needs to work with those already trying to find ways of improving young male drivers’ skills and behaviour on the road, and to invest in their driver education,” said Peter Rodger, IAM chief examiner.
“The biggest incentive to improve themselves would be lower insurance premiums, but the industry denies this to those in the highest risk range, effectively trapping them there.”
Speeding drivers pay double premiums
http://www.insurancedaily.co.uk/2010/01/26/speeding-drivers-pay-double-premiums/
by David Masters
Story link: Speeding drivers pay double premiums
Drivers caught speeding pay an average of £100 extra on their car insurance, new research has discovered.
Getting caught out three times means paying up to double the amount on insurance premiums, moneysupermarket.com found.
A study by the price comparison site identified the UK’s worst speeding offenders.
Scotland, Swindon, and Sheffield were named as home to the worst speeding offenders in the country.
Men were found to be the most likely to speed, with the top ten places for the most speeding convictions all taken by men.
“Unfortunately he classic stereotype of a boy racer lives on,” said Steve Sweeney, moneysupermarket.com’s head of motor insurance.
“There are no female drivers anywhere near the top of the table in our analysis of speeding convictions and unfortunately this is reflected in the price of premiums for men when compared with women.”
The Institute of Advanced Motorists (IAM) said the insurance industry needs to do more to help young male drivers improve their driving skills.
“The industry needs to work with those already trying to find ways of improving young male drivers’ skills and behaviour on the road, and to invest in their driver education,” said Peter Rodger, IAM chief examiner.
“The biggest incentive to improve themselves would be lower insurance premiums, but the industry denies this to those in the highest risk range, effectively trapping them there.”
Gender bias costs male motorists £17,000
http://www.insurancedaily.co.uk/2009/07/06/gender-bias-costs-male-motorists-17000/
July 6, 2009 by Gill Montia
Story link: Gender bias costs male motorists £17,000
New research from moneysupermaret.com puts the average annual premium for male motorists across all age groups at £743, compared to just £454 for women.
According to the price comparison website, male drivers can therefore expect to pay around £17,000 more than women for car insurance during a motoring lifetime.
Several factors play a part in the gender bias but Moneysupermarket does make the point that Home Office research in 2006 found 97% of motorists convicted of dangerous driving, and 94% of those convicted of causing death by dangerous driving, were male.
In addition, the average distance covered by men in the UK over a 12 month period is 12,000 miles, whereas for women the figure drops to 8,000.
Women are also more likely to take shorter journeys than men and at lower speeds.
The cost difference between cover for men and women is also skewed by age, with the average premium for an 18-year-old male driver in excess of £2,200 a year, or £1,905 more than the average premium for a male driver in his 40s.
Moneysupermarket recommends the following ways of reducing premiums for either gender: fitting an immobiliser or alarm; garage parking overnight and opting for a conventional model with a small engine.
Motorist can also check their annual mileage and see if savings can be made with a mileage restricted policy.
Finally, new drivers can cut premiums by as much as 35% by taking the Pass Plus test once they have gained a driving licence.
July 6, 2009 by Gill Montia
Story link: Gender bias costs male motorists £17,000
New research from moneysupermaret.com puts the average annual premium for male motorists across all age groups at £743, compared to just £454 for women.
According to the price comparison website, male drivers can therefore expect to pay around £17,000 more than women for car insurance during a motoring lifetime.
Several factors play a part in the gender bias but Moneysupermarket does make the point that Home Office research in 2006 found 97% of motorists convicted of dangerous driving, and 94% of those convicted of causing death by dangerous driving, were male.
In addition, the average distance covered by men in the UK over a 12 month period is 12,000 miles, whereas for women the figure drops to 8,000.
Women are also more likely to take shorter journeys than men and at lower speeds.
The cost difference between cover for men and women is also skewed by age, with the average premium for an 18-year-old male driver in excess of £2,200 a year, or £1,905 more than the average premium for a male driver in his 40s.
Moneysupermarket recommends the following ways of reducing premiums for either gender: fitting an immobiliser or alarm; garage parking overnight and opting for a conventional model with a small engine.
Motorist can also check their annual mileage and see if savings can be made with a mileage restricted policy.
Finally, new drivers can cut premiums by as much as 35% by taking the Pass Plus test once they have gained a driving licence.
Friday, April 1, 2011
Cooperative predicts its blackbox insurance will be £328 cheaper than quotes from competitors
http://www.thenews.coop/news/Wider%20Co-op%20Movement/2043
March 31 2011
Co-operative Insurance has launched a ‘blackbox’ data recorder to help determine the premiums of young drivers.
The ‘pay how you drive’ system will reward drivers for safer driving, and the Smartbox will constantly assess the driver’s braking, accelerations, cornering, speed and time of driving. Co-operative Insurance, part of the Co-operative Group, predicts the product will be £328 cheaper than quotes from competitors.
David Neave, Director of General Insurance, said: “To ensure we do not end up with an entire generation priced out of car ownership we are giving them a chance to prove themselves as responsible drivers, and dispel the assumption that all young drivers will drive badly and have accidents.”
Drivers will be assessed every 90 days based on the driving behaviours. If responsible driving behaviours are demonstrated they will receive a Safer Driving Discount (up to 11 per cent of the annual premium), but if they drive badly their premium could be increased by up to 15 per cent.
March 31 2011
Co-operative Insurance has launched a ‘blackbox’ data recorder to help determine the premiums of young drivers.
The ‘pay how you drive’ system will reward drivers for safer driving, and the Smartbox will constantly assess the driver’s braking, accelerations, cornering, speed and time of driving. Co-operative Insurance, part of the Co-operative Group, predicts the product will be £328 cheaper than quotes from competitors.
David Neave, Director of General Insurance, said: “To ensure we do not end up with an entire generation priced out of car ownership we are giving them a chance to prove themselves as responsible drivers, and dispel the assumption that all young drivers will drive badly and have accidents.”
Drivers will be assessed every 90 days based on the driving behaviours. If responsible driving behaviours are demonstrated they will receive a Safer Driving Discount (up to 11 per cent of the annual premium), but if they drive badly their premium could be increased by up to 15 per cent.
Stoner brings back room for error on speeding
"The NSW Liberals and Nationals government doesn't want to punish safe drivers who try to do the right thing.''
"Mr Stoner said that he simply wanted to bring consistency to what were ''confusing speed limits'' in NSW."
http://www.illawarramercury.com.au/news/local/news/general/stoner-brings-back-room-for-error-on-speeding/2120126.aspx?src=rss
ALEXANDRA SMITH
31 Mar, 2011 10:47 AM
In one of his first acts as Deputy Premier, Andrew Stoner has not only ordered the Roads and Traffic Authority to reinstate the leeway given to speeding motorists, but he has asked for it to be increased.
Mr Stoner met the RTA chief executive, Michael Bushby, on Tuesday and directed him to axe a Labor cabinet decision to remove the leeway, which would have allowed motorists to be fined for exceeding the limit by just 1km/h.
A Keneally cabinet document leaked days before the state election last weekend revealed the previously secret tolerance was 3km/h, but that the budget committee of cabinet had endorsed its removal.
Mr Stoner, who is expected to be sworn in as roads minister this week or early next week, would not say what the tolerance was but he confirmed it had been increased.
The RTA had always kept the tolerance secret, although there has been an assumption that it was about 10 per cent of the speed limit to allow for faulty speed cameras or speedometers.
VOTE: How much room for error should be given to speeding drivers?
Police have warned that a new set of tyres or the width of a speedometer needle could put motorists over the speed limit under zero tolerance.
While NSW has always fiercely guarded its tolerance, the Victorian government revealed in 2007 that its level was 2km/h for fixed speed cameras and 3km/h for mobile speed cameras, plus a discretionary tolerance.
It is believed that Mr Stoner would have pushed for the tolerance to be at least 5 per cent, if not slightly higher.
The Deputy Premier said the Coalition government was eager to bring an end to needless revenue-raising.
''The NSW Liberals and Nationals are determined to restore commonsense to government in NSW - this is one practical step towards that,'' Mr Stoner said.
''We are determined to earn the trust of motorists by focusing on road safety, not revenue-raising. The NSW Liberals and Nationals government doesn't want to punish safe drivers who try to do the right thing.''
Mr Stoner also promised to ask the Auditor-General to investigate speed cameras and will audit speed limits - which road safety experts criticised, warning that increasing rural speed limits will mean more deaths on the roads.
Mr Stoner said that he simply wanted to bring consistency to what were ''confusing speed limits'' in NSW.
"Mr Stoner said that he simply wanted to bring consistency to what were ''confusing speed limits'' in NSW."
http://www.illawarramercury.com.au/news/local/news/general/stoner-brings-back-room-for-error-on-speeding/2120126.aspx?src=rss
ALEXANDRA SMITH
31 Mar, 2011 10:47 AM
In one of his first acts as Deputy Premier, Andrew Stoner has not only ordered the Roads and Traffic Authority to reinstate the leeway given to speeding motorists, but he has asked for it to be increased.
Mr Stoner met the RTA chief executive, Michael Bushby, on Tuesday and directed him to axe a Labor cabinet decision to remove the leeway, which would have allowed motorists to be fined for exceeding the limit by just 1km/h.
A Keneally cabinet document leaked days before the state election last weekend revealed the previously secret tolerance was 3km/h, but that the budget committee of cabinet had endorsed its removal.
Mr Stoner, who is expected to be sworn in as roads minister this week or early next week, would not say what the tolerance was but he confirmed it had been increased.
The RTA had always kept the tolerance secret, although there has been an assumption that it was about 10 per cent of the speed limit to allow for faulty speed cameras or speedometers.
VOTE: How much room for error should be given to speeding drivers?
Police have warned that a new set of tyres or the width of a speedometer needle could put motorists over the speed limit under zero tolerance.
While NSW has always fiercely guarded its tolerance, the Victorian government revealed in 2007 that its level was 2km/h for fixed speed cameras and 3km/h for mobile speed cameras, plus a discretionary tolerance.
It is believed that Mr Stoner would have pushed for the tolerance to be at least 5 per cent, if not slightly higher.
The Deputy Premier said the Coalition government was eager to bring an end to needless revenue-raising.
''The NSW Liberals and Nationals are determined to restore commonsense to government in NSW - this is one practical step towards that,'' Mr Stoner said.
''We are determined to earn the trust of motorists by focusing on road safety, not revenue-raising. The NSW Liberals and Nationals government doesn't want to punish safe drivers who try to do the right thing.''
Mr Stoner also promised to ask the Auditor-General to investigate speed cameras and will audit speed limits - which road safety experts criticised, warning that increasing rural speed limits will mean more deaths on the roads.
Mr Stoner said that he simply wanted to bring consistency to what were ''confusing speed limits'' in NSW.
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