When switching car insurances recently, I learned that most insurers offer a significant discount when you signup to use a tracking app or device which monitors driving habits and distances. You might see 10% savings when you signup for tracking; exact savings will vary by insurer and policy.
I’m guessing everyone else already knew this. I was vaguely aware of such tracking programs, but thought it was a unique thing to select insurers. However, from researching now various insurance options, it seems that every insurer has this program in one form or another. I write this post in case there some other set-it-and-forget types like me who set up their insurance years ago and never noticed this savings program.
Two things to keep in mind:
Someone sensitive to privacy concerns won’t find the savings worthwhile.
Someone who doesn’t have good driving habits will likely do better without the app.
It is worth noting, however, that even an aggressive driver should be able to get an initial discount. But at the next renewal (6 months or 1 year later) their rate will probably end up being higher and they’ll lose out in the long run.
One insurance agent cited me a Progressive study that 90% of people (I think that was the number she said?) end up saving, in the long run, by having the app. I’d be interested in hearing real-world experiences on this.