How to Compare Insurers’ Car Tracking Devices

When it comes to car insurance premiums, everyone looks for ways to spend less without compromising coverage quality. Fortunately, you have many options for achieving that goal. For instance, you can take advantage of discounts that most insurance companies offer. One example is bundling, which means the same insurer has a policy for multiple things like your home, auto, and business.

However, another option has become increasingly more popular in recent years, insurance car tracking devices. This is also called a telematics device, which is a great way to reduce what you pay for auto insurance. Keep in mind that while many companies now offer this, not all do. So, if this is something of interest, make sure you compare car insurance with a tracking device to find the best options.


How Does an Insurer’s Car Tracking Device Work?

This innovative tracking or monitoring device plugs into a vehicle’s OBD-II port. This is a part of your car’s onboard diagnostics system, usually located on the steering wheel column. With this installed, the device records your driving habits. While that might seem somewhat invasive, the purpose is to allow car insurance companies to offer lower rates to people with positive road behavior.

The recorded information then goes to the insurer. There, the data gets analyzed. In particular, most car insurance companies look for specific data. That includes things like the number of miles you drive, your average speed, braking consistency, smoothness of braking, and more. What it comes down to is that the better you drive, the more you can save on insurance premiums.


Are All Insurer Tracking Devices the Same?

The answer to this question is no. Although the technology behind the device is similar, some work better than others. For example, the Drivewise device from Allstate ranks as one of the best. Not only does it send information to the company, but there is also a mobile app available, which allows you to look at your driving performance whenever you want.

Allstate will give you a discount on your car insurance simply by signing up for Drivewise. Then, as long as you show good driving behavior, you will receive cash from the company every six months. Overall, this device can save you as much as 40 percent off your insurance premium.

Another excellent option is Snapshot from Progressive. The system gathers information via a plug-in device or a mobile phone app. Again, Progressive offers a sign-up bonus and additional savings that equate to an average of $146 annually. The majority of drivers with this system love it.

As a popular way to save money on car insurance, many other companies offer a monitoring device. Another one is RightTrack, which is available from both Safeco and Liberty Mutual. As with the other devices, the amount of the discount depends on your overall driving habits. For this particular system, the company sends out discounts after an initial 90-day driving period. On average, this comes out to 30 percent.

Nationwide Insurance has the SmartRide monitoring device. When signing up to have the device installed, this insurer provides a 10 percent discount off premiums. However, for someone with excellent driving behavior, the ongoing savings can easily jump to 40 percent. Keep in mind that for SmartRide and the other devices mentioned, the discounted rate is ongoing. In other words, it is not a one-time reduction in premiums but a benefit to enjoy as long as you continue to drive safely and maintain the company’s policy.


Easy Comparisons of Insurer’s Tracking Devices

Thanks to the internet, you will have no problem finding several trusted online sources to compare what different insurance companies offer. You can learn the name of the device, any specifics about how it operates, and the type of discount you can expect. Considering the potential savings, most people agree that having a tracking device on their car is worth it.

However, there is another benefit of having your driving behavior recorded. Knowing you have a device installed in your car is a constant reminder to drive safely. If you typically brake hard, you will likely find yourself correcting this lousy behavior. As you see your premiums decrease, there is a good chance you will feel even more motivated to change some of your driving habits.

You can take advantage of the savings that come from a tracking device coupled with other incredible discounts offered by your insurance company. To better understand the difference between this type of monitoring system, do research online.

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