Consumer’s are always looking for ways to save on car insurance – besides just switching to Geico. In more than 25 states, consumers can opt for a GPS device placed in the car that tracks miles driven in return for a discount.
Progressive insurance has been selling the so-called ‘pay-as-you-drive’ policies since 1998, and says they are very well received.
A number of factors are attributed to the rise in popularity. For starters, the device cost has reduced dramatically, with units costing less than $100. People have also become more accustomed to surrendering a certain amount of privacy, as social networking has taken hold.
Initially, the idea was to track mileage driven, location, and behavior, but now mileage is the main index, as drivers feel less invaded.
– By: Stephen Calogera
Source: Detroit News