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Drivers Being Given Car Insurance Discounts Based On New Forms Of Technology

The world has changed a lot since the Internet was invented. Car insurance companies have utilized technology a lot and now they are going even a step further. Many car insurance companies now offer low mileage discounts and now they are going to be monitoring their policy holders even more closely.

Satellites and other forms of technology can be used to monitor the mileage that drivers are driving. Many car insurance companies use in car devices that policy holders must install on their vehicles for three to six months to show their driving patterns.

Car insurance companies want to give discounts only to those drivers that they view as being deserving. Some drivers can receive half off if they install a device on their car and drive less than 500 miles per year. Many senior citizens only use their vehicles to go short distances once or twice per week so they may be able to take advantage of such as discount. However, most people who have children will probably receive less of a discount because they have to drive on an almost daily basis. Children need to be dropped off at school five days a week and activities and errands need to be run.

The in car driving devices can report several things to car insurance companies. These include the following: mileage that has been traveled, the speed that the car was driving, the time of day that the car is being driven, how many times the vehicle accelerated, and how many times the car makes sudden stops or turns.

If a person drives a lot at night then they will face higher car insurance premium rates. This is because the night time hours reduces visibility and people often become fatigued when behind the wheel and end up falling asleep while they drive. This can lead to car accidents which reduce the discount that will be offered. Most insurance companies offer a ten percent discount for policy holders that sign up for the programs and then they adjust the discount after the information has been compiled.

Drivers who drive more than 10,000 to 11,000 miles per year will receive a discount of ten to eleven percent off of their insurance premiums. Few drivers are signing up though because they are put off by the idea of the program. One insurance company had only 500,000 of 12 million policy holders’ sign up for the program. Drivers should consider giving it a shot so that they might qualify for a discount.