Are you tired of your auto insurance rates going up even though your car is getting older, and you haven’t had an accident?
Are you a good driver?
How much would a 30% discount save you?
More and more auto insurance companies have the ability now to tailor your rates based on your driving habits. This is called usage-based insurance. If you think you are a good driver, put your skills to the test and sign up for the telematics discount.
Different companies have different names for their telematics discounts. With Progressive, it's Snapshot. With Safeco, it's RightTrack. With State Auto, it’s Safety 360. Whatever the name, the idea is the same- the better you drive, the more you save. Plus, they are all free to enroll and offer a participation discount. Let’s take a look at each company’s telematics discount individually.
Progressive has two options for their Snapshot discount. You can be mailed a plug in device, or you can download an app on your phone. Once you sign up, you must plug in the device or download the app within 45 days, or you will be unenrolled. In MS and AL, Progressive is tracking data on your hard braking, mileage, and time of day that you’re driving. A hard brake is defined as a decrease in speed of seven mph per second. To maximize your discount, keep driving under 15,000 miles per calendar year and try to stay off of the roads between the high risk hours of midnight and 4 a.m. You’ll keep the device (or app) plugged in for your full six month policy period and earn a small participation discount for doing so. Once Progressive has collected all of their data, you can earn up to a 30% discount that stays on your policy as long as you have the vehicle.
You’ll have access to track how you are doing online or on the Snapshot app. If it looks like you aren’t such a great driver, you have the option to opt out within 45 days of signing up. You’ll lose the participation discount, but otherwise your rates won’t be affected. If you are a bad driver and don’t opt out, you may see your rates go up at renewal. The discount offered is on a spectrum- so you could earn anywhere from 0% to 30% based on your driving habits. You don’t have to be perfect to earn the 30%- we have real customers who have earned the full discount.
Safeco’s RightTrack discount is very similar to Progressive’s Snapshot discount. You will get an initial discount when you enroll and plug in the RightTrack device. You’ll drive with the RightTrack device plugged in for 90 days, and can monitor your habits online with your RightTrack account. Safeco bases their discount on the number of miles driven, the time of day you drive, hard braking, and they track rapid acceleration as well. The great thing about the RightTrack discount is the minimum discount you can earn is 5%. You will not see a surcharge based on your driving habits at any point.
State Auto’s Safety 360
State Auto’s Safety 360 is a fairly new discount in MS and AL at this time. Safety 360 works by plugging the telematics device into your car and leaving it installed at all times. This is different from Progressive’s Snapshot and Safeco’s RightTrack- with State Auto, you will keep the device plugged indefinitely or until you enroll in the program. This allows you to constantly monitor and, in theory, improve your driving habits. You will earn a 10% discount while the device is plugged in, and have the opportunity to earn up to 50% off of your premium. This is the largest telematics discount available on the market. Careful though, you could be surcharged for poor driving habits. With State Auto’s Safety 360, you’ll earn your discount at each renewal. So you’ll earn the participation discount the whole time but, depending on whether you have a six month or an annual term, it may take a while for the full savings to show up. The metrics that State Auto’s Safety 360 is measuring are miles driven, time of day, hard accelerations, hard breaking, cornering and speed.
The concern that we the most from our customers is privacy. The information collected is only used by your insurance company and is not shared or sold to anyone else. The data collected is encrypted. All of the companies use closed cellular networks with secure databases to protect their customers’ information.
Are you ready to have the insurance price you deserve? If you live in Mississippi or Alabama, call Pearson & Company Insurance at (601)482-6699 and we’ll get you set up with a company that offers a telematics discount. We'll make sure you are getting all of these discounts, too.