Plug-in devices that monitor aspects of an auto insurance customer’s driving are nothing new. And it’s nearly impossible to miss the commercials touting the savings that good drivers might enjoy if they try out their carrier’s usage-based programs.
But what is still only whispered about are the potential downsides: surcharges for bad driving. Most auto insurers go out of their way to insist that their driver-monitoring programs exist only to reward safe drivers and that the worst outcome for trying one is that drivers don’t get the advertised savings. And even then, insurers say, drivers will gain valuable feedback and be able to make positive changes in their driving.
Assessing Driving Habits
We all want to believe we are good, safe, conscientious drivers and that usage-based insurance would only benefit us. However, with the potential for surcharges now in play, drivers must be able to carefully assess their driving before signing up. Though very few members of these programs are currently subject to potential surcharges, Progressive’s change seems to foreshadow more changes to come.