By now you have probably seen commercials about auto insurance companies using a “device” that you plug into your car to monitor your driving. Do you wonder exactly what the insurance company is monitoring? Is it the right option for you and your family? How can you customize your auto insurance rates?

Auto insurance companies are trying to customize rates for their customers individually. Often, as an agent, I hear customer comments such as, “I rarely even drive that car” or “I drive like a grandma and always abide by the speed limit” or “I only drive that car once a week to the grocery store.” These little devices give you a chance to prove it.

For instance, if your neighbor drives 30 miles to work per day and you only drive 5, he is considered more likely to have an accident since he drives more miles and has longer drive times than you. As a result, in theory, he should pay more for his auto insurance than you, but that isn’t always the case. The number of miles you drive is indicative of the risk you pose to a company. The more you drive, the more likely you are to have an accident.

Most auto insurance rates do not really account for people who have low mileage. Many drivers pay higher premiums to compensate for people who drive with higher mileage. Welcome to a way to get savings for the way YOU drive. The devices that are furnished by your auto insurance company will monitor the miles you drive, time of day you drive and perhaps other factors such as speed, hard braking, location, acceleration and cornering.

Is it right for you? If you work from home or have a short commute, you could earn up to a 30% discount on your auto insurance. That’s a pretty large savings! You may also have a vehicle that you seldom use. You may choose to put the device in that vehicle only. If you are a safe driver with few or no violation or accidents, it may be a good fit for you, too.

You may wonder if auto insurance companies will use this information against you. This may be something to consider, and each auto insurance company treats this issue differently. You should discuss this with your insurance agent. He or she should be familiar with each company’s practice concerning usage-based insurance.

For more information on auto insurance, contact your trusted local insurance agent, Sandi Purinton with The Insurance Connection. We help our clients Live Better. Save More. Offering the benefits of an independent agency, The Insurance Connection carefully considers your individual insurance needs and finds the right coverage for the best price for you, all with a smile. Contact us today at 678-439-8757 or to get free insurance quotes

Disclaimer: This material is for information only and is not intended to provide legal or professional advice. You are encouraged to consult with your own attorney or other expert consultants for a professional opinion specific to your situation. This information is only a general description of the available coverages and is not a contract. In an effort to keep your policy coverage affordable, the actual policy contains certain limitations and exclusions. Please refer to your insurance policy for the pertinent contract language and coverages. Some coverages and discounts are not available in all states. The Insurance Connection welcomes all applications, without regard to religion, race, color, national origin, sex, handicap or familial status.