Taking a Look at “Pay-As-You-Go” Auto Insurance
Insurance companies can be tricky. For instance, some of the big companies such as Progressive, Allstate, and State Farm, are now selling a “pay-as-you-drive” auto insurance in New Jersey. What this means is you install a driving monitoring device (such as Progressive’s “Snapshot” program) and will record how far you drive, how often you drive, and how hard you use the brakes. Based on this data, the car insurance will then offer you a premium that matches how you drive on a daily basis. It’s been estimated that drivers will save anywhere from 58 percent to 70 percent on their car insurance by using this device.
Now we all know how expensive car insurance is, especially in New Jersey. And this type of insurance may be worth it for someone who is struggling financially. But what are you really getting when you sign up for this type of coverage? Or, more importantly, what aren’t you getting when signing up for this coverage?
This type of program is really for people who don’t drive great distances every day and drive during safer times of the day, such as the morning. Plus you have to meet certain minimum miles you can drive each month in order to receive the benefits. Although you don’t lose any of the benefits that you have with a normal insurance policy, you do lose your privacy. These devices will track you wherever you go for up to six months, sometimes longer. If you are uncomfortable with that kind of exposure, then this program might not be for you.
The best thing to do was to speak to your insurance agent to see if this program is best for you. If for whatever reason you feel uncomfortable with your insurance agent, we are here to help. Always remember when speaking with your agent that if the agent wants you to “waive” any of your rights, you should run away as fast as you can.