We have all seen the commercials with the spokesperson trying to influence others to try a little white click-in box to monitor your driving habits. These boxes are becoming more and more popular with some Auto insurance companies. Why? Because they do what they are advertised to do.

These boxes are designed to monitor your vehicle and your driving habits to establish what type of driver you are so they can insure you properly. Yes “properly.” You may not be paying the proper amount for the type of driver you are because of the general level you have been classified in.

If you have teenagers, or were a teenage driver that had to pay for your own insurance, you know that you pay a much larger premium for coverage that similar drivers that are older. Teenage boys under 25 years-old are charged a large premium for insurance because of the statistics they fall under. According to Survive, a website created by the court system for parents and teens, teenagers accounted for 10% of the population in 2013 but accounted for 13% of the vehicle accidents recorded nationwide. In addition, teenagers are 4 times more likely to get hurt in an accident than elderly drivers. Male teenagers are twice more likely to be involved in a vehicle accident than female teenagers.

Does this mean that all teenage drivers are the same? Not at all. Does it mean that every teenager will be involved in a vehicle accident? Hopefully not. However, they are still charged their insurance premiums at the rate of the statistic rather than their actual driving habits. The same happens with adults more often than not, just not as the rate of teenage drivers.

These little devices and the program, called Driver Usage-Based programs, allow the company to see how you drive and insure you properly. Depending on the program and the company offering it, these devices can monitor: mileage, time of day the vehicle is driven (to assess night-time driving risk), speed, brake use, swerving/erratic driving behavior, and some other factors.

According to an article in InsuranceQuotes.com, a Progressive representative stated that an average of 30% of clients using Snapshot (their driver usage-based device) saved money on their insurance after the initial 30-day monitoring time. The drive uses the device for the next 6 months so that a renewal can be calculated appropriately at the necessary time.  

This tool is not for every driver. You know who you are! However, this may be the tool that motivates you to slow down, be more careful, more aware, or whatever you think your driving habits lack. Another factor may be the exclusivity of the program requirements. If you want to know more about these or the program, contact your Auto insurance carrier.

If you feel you need a new or better Auto insurance policy, or if you have questions about your current policy, give Debbie at Southern Colorado Insurance Center at (719) 329-4441 or email her at youarefirst [at] scicteam [dot] com. If you have questions about any insurance policy you have or need, or to receive a quote, visit Southern Colorado Insurance Center at http://www.scicteam.com/.