The Role Of Tracking Devices In Auto Insurance Policies

Looking for a discount on auto insurance? Not sure what tracking devices are, and how they help insurers? Read on to discover some of the top new ways that auto insurance companies are offering better deals using cutting-edge technology and new data gathering strategies. 

The Auto Insurance Tracking Device

Most tracking devices for auto insurance are small, sensor-based pieces that you can easily install in your vehicle. These little extras will ride along with you and sense your movements. For example, sensors will keep track of your vehicle speeds and your use of the accelerator and brake pedals, as well as other safe driving indicators.

Insurance companies will often send these out to new policyholders in the mail. The insurance customers will put them in their vehicles and the insurance company will track their movement for a while, often for a number of months. Then the customer can simply mail the device back to their insurance company.

What Insurance Companies are Looking For

Essentially, insurance companies use these tracking devices to see how safe your driving is.

One example is related to posted speed limits -- the tracking device may not know what speed limits are on the streets that you travel, but if they see a lot of mileage of 80 or 90 mph, they'll know that you are speeding.

Another very important point is that the insurance company will track start and stop activity.

Again, you may be caught in stop and go traffic. However, one thing that insurance companies are looking for is a high degree of acceleration and rapid braking. They're looking for whether you have to ride the brakes, because you're tailgating the driver in front of you, and they they're looking for the kinds of overly harsh acceleration that happen when you 'open up' or rev the engine of your hot rod on a back road.

All of these things get factored into auto insurance calculations.

Why Does the Tracking Device Provide a Discount?

By using the tracking devices, insurance companies can collect hard evidence that puts a driver in a certain category of safe drivers.  

In years past, insurance companies had to go on just a driving record, which can't really tell them much about a customer. Tracking devices can tell them whether someone is deliberate and conscious in their driving, or being reckless with a vehicle.

Ask a local insurance company (such as Peake Insurance Agency) about incentives and programs for tracking devices in vehicles.