Do car insurance tracking devices save you money? Here at Affordable Insurance in Aurora, we are often asked about the pros and cons of these tracking devices. Several insurance companies advertise getting one with the promise of great discounts.
What Exactly Is a Tracking Device?
Car insurance tracking devices are small pieces of hardware, about the size of a matchbox that can be plugged directly into your car’s computer. Built-in computers control the majority of cars produced in the last 25 years. With a tracking device plugged into the OBD II port, all types of vehicle data generated by this computer can be extracted, stored, and sent wirelessly to your insurance company. The car insurance company can then analyze this data and offer discounts to safe and careful drivers.
What Information Can My Insurance Company Collect?
The data that auto insurers are most interested in gathering via the device in includes:
- Time of day driving takes place
- Distance driven
- Time spent driving
- Hard braking
This information can be collected over time and used to build up a profile of the driver. Certain habits such as driving irregular distances, driving late at night, breaking the speed limit and frequent hard braking (slamming on the brakes) can paint a picture of a risky driver.
Is It Worth It?
While a discount is not a guaranteed result of using car insurance tracking devices, currently there are no penalties associated with having it installed. Right now, it is a win-win system, so you may as well give your insurer the option to reward you. Remember, it is an opt-in program, and nobody will force you to continue if you don’t want to. You can opt-out at any time. However, once the device has been turned off or disabled, you will lose any discount earned.
So, do car insurance tracking devices save you money? The answer is… probably if your driving habits fit into the good driver template devised by your insurer. At the very least, you won’t lose any money. The benefits of having a tracking device may outweigh the disadvantages, especially when you take into account being able to track your car if it is stolen or involved in a collision. For more information or assistance in putting together an insurance package that fits your needs, don’t hesitate to contact the friendly team at Affordable Insurance in Aurora, Colorado.