Pay-As-You-Go Insurance: Privacy Protection and Concerns
Drivers Beware: Pay-As-You-Go Insurance Discount Comes in Many Forms
Pay-As-You-Go insurance programs have numerous benefits including substantial insurance discounts. However, there's some concern about how much information insurers should require before awarding a Pay-As-You-Go insurance discount.
Some Pay-As-You-Go insurance programs gather more than mileage. For instance, Progressive's Pay-As-You-Go insurance discount program captures driving behaviors such as braking patterns, speed, and the time of day you drive. All information may be recorded, and some consumer privacy advocates worry the company will use that information to calculate auto insurance premiums and claims payouts. There's even the potential for this information to be used in unrelated lawsuits. But their biggest concern? With these Pay-As-You-Go insurance programs, advocates are worried that in the end, your premiums may actually go up.
National General Insurance Pay-As-You-Go Insurance Discount: Easy. Private. Effective.
With the National General Insurance Pay-As-You-Go insurance program, consumer privacy is respected and completely secure. The opt-in National General Insurance Low-Mileage Discount uses only odometer readings, which are automatically sent through monthly OnStar Vehicle Diagnostic reports. Insurance discounts are awarded based solely on the miles driven. No other factors are considered, shared or used in any way.
And with National General Insurance's Pay-As-You-Go insurance discount program, drivers are not penalized if they drive over 15,000 miles. While they are no longer eligible for the Low-Mileage Discount program, these customers still receive an insurance discount simply for having an active OnStar subscription.
Not all Pay-As-You-Go insurance discount programs are the same. It's important for drivers to enroll in one that's comfortable for them.
It would take an 81-cent-per-gallon increase in the gas tax to achieve the 6.5 percent reduction in miles driven that pay-as-you-drive insurance programs would achieve. -Brookings Institute Learn More
If the state of California implemented a pay-as-you-drive insurance program, it would result in an eight-percent decrease in driving from light-duty vehicles. -Brookings Institute Learn More
Nearly two-thirds of Californian households would receive an insurance discount under pay-as-you-drive insurance with an average savings of $276 per vehicle per year.
-Environmental Defense Fund Learn More
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