By Chris Woodyard, USA TODAY
If you thought devices that voluntarily spy on your driving might be a
passing fad, think again: One big insurer says it’s finding that such
systems are more than two-and-a-half times as good as traditional
methods at predicting accidents.
Progressive Insurance just released a finding based on the program it
introduced a year go that finds “loss costs” for the drivers with the
highest-risk driving behaviors are about two and a half times higher
than those for drivers with the lowest-risk behavior.
Though it has tried “usage-based” insurance programs for years,
Progressive introduced a system called Snapshot last year in which
drivers are sent a small device that plugs into their cars and relays
information about their driving habits. The insurer says it measures the
time of day the car is driven, distance driven, and how many hard
brakes per mile the driver makes. Other insurers, such as State Farm and
GMAC, also have similar programs.
As a result, Progressive says it has found that 70% of drivers who
have signed up for its Snapshot program pay less for their insurance
than they did before the program began:
They are saving an average of $150 a year. It’s offering to let any
driver give the program a 30-day tryout, not just its own customers, to
see if they will save money in the 42 states in which it is offered.
Progressive officials say they want to prove that good drivers are
paying unnecessarily high premiums based on the risk they present to
“For most, the rates they’re paying are higher than the risk they
actually present –- and in many cases, much higher,” says Progressive
CEO Glenn Renwick in a statement.
Re-posted by Vincent Rush of Lynx Telematics
Insurance companies want to take the lead in marketing and managing
UBI services. It makes sense since they already have familiar brands as
well as the customer base. Most important, they are the ones with
relationships with state regulators, keeping track of the myriad
regulations and requirements of individual states.
A Company in Cincinnati, Lynx Telematics has developed a device called the Lynx Safe Teen Driving Monitor that can not only provide insurance companies with a UBI telematics
device, but is the first of its kind to give parents “real-time”
parental control and live monitoring of their teens driving habits,
while at the same time, preventing texting and driving.
Vincent Rush, President of Business Development for Lynx Telematics,
commented in Nashville recently that, “While we realize that quality
and integrity of data is paramount in the UBI market, we also saw a
gigantic void. Many insurance companies have the programs, however
parents really have no control over their children’s driving habits,
until the company reports back to them. We wanted to bring, not only
savings to a parent, but peace of mind as well. As a parent, I don’t want to receive a report about my kids poor driving habits, 3 days after their funeral. I want to know the instant my teen is getting careless. I’ve already had one personal experience and I don’t care to have another”
With the LynxSafe telematic device,
Mom & Dad are now, figuratively in the front passenger seat with
their teen driver from the moment they pull out of the driveway”. Rush
went on to say that, “Our single user interface model allows Mom and Dad
to set parameters as well as receiving immediate text alert and emails
when their son or daughter is speeding, driving radically, or in any
type of accident as well as experiencing any mechanical break down.”
For more information on the LynxSafe Device and Lynx Telematics, contact Vincent Rush at (513) 965-6318 or email@example.com