Lower Insurance Rates With MyRate

With consumers looking to cut costs anywhere they can in the current economic climate, many people are looking at car insurance as one area where they wouldn’t mind making a few scale-backs.

Yet, rather than abandon coverage entirely, or even adopt a policy with a higher deductible, many are looking for an option that will enable them to continue to enjoy their same level of protection, while also being rewarded for their safe driving. While this was once little more than a common sense dream to be complained about over a drink with friends, it is now a sterling possibility that many drivers are taking advantage of.

Progressive, one of the nation’s most lucrative insurers, has introduced a new electronic device that says to drivers who claim that their safe driving should qualify them for reduced rates: prove it. The device, which plugs into the diagnostic port on a vehicle, enables the insurance company to track certain information about how the car in question is used – how many miles its driven each day, what time of day it’s most frequently driven, and even how many times the driver has to come to a sudden unplanned stop.

While many are naturally skeptical about the invasive nature of such a device, especially in the post-Patriot Act United States, insurers insist that the MyRate device monitors nothing more than driving habits and cannot in any way compromise a person’s security or identity. Spokesmen and women suggest that the reluctance to adopt MyRate is similar to reluctance seen towards online bill paying just ten years ago; obviously, that is now a standard practice all across the world.

So, how exactly does this system work? Simply put, the device is installed in your car, and then you drive as you normally would. During the first six months after installation, you get a good-faith discount for buying in to the plan that is equal to ten percent off your current policy. Over those six months, MyRate will monitor how you drive, when, and how safe, defensive, and conservative your driving habits seem to be. At the end of that six month period, the data is evaluated, and you are offered a new rate that matches up with your unique and personalized driving style. The majority of consumers stand to save at least a little using this program.

It is not, however, flawless. Bear in mind that should your driving seem erratic to the MyRate system, then your rates might actually increase, and as a result of buying in, you would then be held to those new raised rates. Keep this in mind, and weigh the possibilities of getting into an accident during the six month span in question, and what it might spell for your future coverage.

All in all, of course, the system is quite a novel and compelling one. At the very least, it offers some recourse for those drivers who have long complained about being penalized for the models they drive despite the fact that they’ve “never gotten into an accident”, or who make only very seldom use of their high-cost vehicles. If you’re willing to abandon a little bit of privacy and are sure you can keep up your track record of good driving, then this may just be an option for you.