Slower, More Careful Drivers To Get Reduced Insurance Rates

scan gage mileage money insurance premium saving photo

Adam Stern over at TerraPass blog explains how the intersection of car-embedded PCs and changing driving habits can create an opportunity to get a reduced insurance rates. It's a money saver for "drivers who drive less, apply a light foot on the pedal, and avoid sudden stops." If your state insurance commission allows novel pricing schemes, have a $150 device installed in your car (no GPS involved at all), with a potential to recoup more than that the first year - just from the insurance savings. Here's Adam's money quote:

Two big insurers offering the pay-as-you-drive discounts in selected states are Progressive (via the MyRate program) and GMAC Insurance (via the Low-Mileage Discount program in association with OnStar). Researchers at The Hamilton Project of the Brookings Institution report that broad adoption of such programs could reduce driving by 8% nationwide, with comparable CO2 reductions. Average savings for participants could be $270 per car per year.
Via::terrapass blog, Cut your carbon and save on auto insurance. Pay-as-you-drive programs reward those who drive gently. Image credit::Terrapass via picasaweb, ScanGauge II Car ComputerScanGauge car computer in action - displaying real-time mileage
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