• Aug 23, 2013
Can drivers put a price on privacy? According to a new survey from Lynx Research Consulting, they sure can. And that price is a ten-percent discount on their car insurance.

The survey found that more than one in three insured drivers would switch from a traditional monthly premium-based insurance plan, to one based on when and how a vehicle is driven if it gave them a ten-percent or better discount, The Detroit News reported.

On average, drivers with usage-based insurance see a savings of between five-percent and 35-percent. It may not seem like much, but the average car insurance premium rose 35-percent from 2012 to 2013, according to J.D. Power and Associates.

Usage-based insurance works by accurately recording a vehicle's odometer and tracking its location via GPS. This allows insurance companies to better calculate the risk level for each driver by learning their individual driving habits, often saving them money. Currently, insurance companies base rates on aggregated statistics and past driving records.

Besides drivers suddenly seeing penalties in their premiums for late night snack runs or trips to rougher parts of town, there's the matter of privacy. There are no laws or guidelines established regulating the usage or release of such information. Basically, once your driving habits are recorded, there isn't much there to stop them from getting out. But, hey, at least you'll have a little extra cash in your pocket.

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    • 1 Second Ago
      • 1 Year Ago
      The Detroit News says it all. Most there don't even have insurance.
      • 1 Year Ago
      the insurance companies know to much about us now
      • 1 Year Ago
      • 1 Year Ago
      Can anyone show me a poor insurance company agent?
      • 1 Year Ago
      This is the most pathetic thing that I'm never going to look at again. WOW! I cannot believe this. My country has lost its perspective and common sense. What has O'banana got in store next? Look out young'ins.
      Alan Haney
      • 1 Year Ago
      • 1 Year Ago
      if ins, co, stop their ads. rates would be a lot cheaper. progressive and geico for starters.
        • 1 Year Ago
        I see more Allstate adds than either of those 2
        • 1 Year Ago
        advertizing is tax deductible, spend it or give to the govt pay yourself, your wife, your kids for appearing in a commercial out of your advertizing expense account, it's tax deductible
      • 1 Year Ago
      Never, ever, ever!
      • 1 Year Ago
      In New York, insurance companies already inquire where you work and the distance traveled each day. They compute your mileage in personal time on average, and add it to your daily work commute.... $ :>)
        • 1 Year Ago
        Insurance companies are alike everywhere on that part of their fact finding. But, those little monitors that connect to the computer in your car is one way to find out if you speed on your way to work or apply the brakes a little to hard. Speaking for myself, I opt out of that program. After you have been with Progressive they jack up your rates even though there have been no traffic violatons or accidents. They say it is because of the change in laws in your home state when you call them on it. Then they suggest that you try out their little monitor to save up to 30% on your premiums. Funny thing, over the period of 5 years of raising rates comes out to almost 30% exactly. I brought that up to them and they said oh, that is only coincedence.
      • 1 Year Ago
      Rest assured that if they want to monitor your driving habits, it is not to lower your premiums! If anything, it's to raise them for any reason they can.
      • 1 Year Ago
      Unfortunately there is already GPS in 90% of new cars. They will be placing 'little black boxes' in the car as well. Capable of being remotely accessed to detect speed, erraticness and potentially even content or conversations...
      • 1 Year Ago
      Insurance agents are far worse scamers that used car salesmen
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