First Gas, now Driving Habits?
Hey folks,
Remember a little while back we talked about the Government wanting to place GPS Devices in your car to charge you tax on how much you drive? Well now, the Auto Insurance companies are getting into the act. Are you SURE you are OK with this. It sounds good, to some, but always remember there is a hidden cost.
Big Brother, Big Savings
Pay As You Drive Insurance Trades Privacy For A Discount
by Bengt Halvorson AOL Autos
Posted: 16 May 2009 With HP wireless printers, you could have printed this from any room in the house. Live wirelessly. Print wirelessly.
Tim Goodwin doesn't spend much time behind the wheel of his 2004 Chevy Tahoe. Even though he only covers about 3,000 miles per year -- using it just for weekend trips -- he had, until recently, been getting no special deal on his insurance for driving so little.
Six months ago, the Springfield, Missouri property supervisor found a policy that gives him a break. So far he's saved about $48 -- or ten percent -- over six months compared to a traditional premium.
There's a catch; his insurance company, Progressive, is monitoring every move he makes behind the wheel.
Goodwin is fine with it, and says that just knowing that a small transceiver is reporting his driving behavior back to the insurance company helps him drive more carefully.
"There's this Big Brother thing, but it's good," Goodwin said. "Since I know I'm being watched, I'm on my best behavior."
THIS IS IT! This is the hidden cost folks. Your Freedom. THIS is the mentality that allows Tyranny to take place. Well, I can't be free. I can't live right, unless I am monitored. I NEED someone else to control me. "It's good." {sigh}
Goodwin noted that he's now less likely to speed.
"You'll, in effect trade a degree of privacy for a lower rate" in such a pay-as-you-drive policy, explains Mike Barry, vice president of media relations for the Insurance Information Institute. "They know not only how many miles you drive but how and when you drive."
At least they are being honest here. So will the Government with the GPS Tax as you go thing. Make no mistake about it. They will know where you are and what you are doing at all times. People LIKE this. Unbelievable.
For now, MyRate is the only widely available pay-as-you-go auto policy -- available now in nine states (Alabama, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Missouri, New Jersey, and Oregon), with at least three more expected by the end of the summer. There are "tens of thousands" of drivers already enrolled, according to Progressive, and one in four existing customers of the company who've become eligible for the program have opted in.
Progressive's Pay As You Drive DeviceProgressive says that MyRate may save up to 25 percent versus a traditional premium if you travel less than 10,000 miles per year, are a defensive driver, and rarely drive past midnight. What bad behaviors does the system look for? Sudden starts and stops, and driving during higher-risk times, will raise the rate -- by up to 9 percent in states where a surcharge is permitted. Progressive says that if you drive even once a week between midnight and 4 a.m. the policy probably isn't a good choice. On the flip side, smooth rural drivers who cover more than 15,000 miles a year could also save 20 percent or more.
So do not go to far. Stay close to home. Or better yet, gather together in clumps that the Government can keep a better eye on you. The article goes on to say this.
While privacy advocates might already be up in arms over the data set -- which won't be shared with third parties but could be kept for up to six years -- they'll be somewhat relieved to hear that MyRate doesn't have GPS capabilities. The system knows 'when' and 'how' you drive, but not 'where.' For that, we'll leave the controversy to the GPS locators in cell phones.
And of course the Governments GPS Tax Milage program.
Tracking exactly where users go would create serious privacy concerns, admits Steve McKay, product manager for MyRate.
"Knowing location wouldn't add a lot to the predictive value either," McKay said.
The state of California in 2006 outlawed the pricing of policies by zip code, along with several other factors.
Although the future of pay-as-you-drive plans might rest in GPS-based systems that do track where you go, it's now looking like a distant future. California has also recently adopted new regulations that set the framework for pay-as-you-go policies, but the state's insurance commissioner, Steven Poizner, is especially conscious of the privacy concerns that the technology brings.
"I will not approve any auto insurance policy that aims to utilize GPS devices in order to obtain location data from consumers," Poizner said in a release last year.
Well, isn't that nice of him. OH, get this.
Nudges Drivers To Be Safer And Greener
Drivers might simply choose pay-as-you-drive policies to get a break on their premium. But it'll likely save them even more in the long run; because they'll probably drive their cars gentler, get better gas mileage, put less wear on their vehicles, and be less prone to getting tickets.
"Just leaving the device in your car changes your behavior," Allstate spokesman Raleigh Floyd said. Because the company is scoring the driver's actions and there are measurable rewards for good behavior. "It becomes more game-like--and the benefit is that you're a safer driver."
Even Goodwin admits that he finds restraint in his Tahoe when he wouldn't have before.
"Now when I just want to floor it, I don't," he said.
They're likely to reduce their trips as well. According to a report from the Brookings Institution, if motorists paid for their auto insurance by the mile, driving would decline by about eight percent nationwide, significantly reducing carbon-dioxide emissions and gasoline consumption, and nearly two-thirds of drivers would pay less for auto insurance.
Major environmental groups and safety advocates are also on board; the ten-percent decline in driving anticipated by the Environmental Defense Fund would not only reduce air pollution and toxic runoff but also translate to saved lives, through a 17-percent reduction in crashes.
Of course. If this works, and they can get enough people on board to see this as a good thing, watch, it will become LAW. The Government will make sure that you all have one, in the name of saving the planet of course. Besides, as this Idiot CLEARLY stated, "We can not control ourselves, we need someone else to do it.
Sorry folks, I'll say where, when, and how, I drive. I do not need the Insurance Company to control me, nor do I need the Government. You can if you think this is good. As for me, I'll opt out. Thanks but no thanks.
Peter
Sources:
AOL- Auto - Big Brother, Big Savings
Hey folks,
Remember a little while back we talked about the Government wanting to place GPS Devices in your car to charge you tax on how much you drive? Well now, the Auto Insurance companies are getting into the act. Are you SURE you are OK with this. It sounds good, to some, but always remember there is a hidden cost.Big Brother, Big Savings
Pay As You Drive Insurance Trades Privacy For A Discount
by Bengt Halvorson AOL Autos
Posted: 16 May 2009 With HP wireless printers, you could have printed this from any room in the house. Live wirelessly. Print wirelessly.
Tim Goodwin doesn't spend much time behind the wheel of his 2004 Chevy Tahoe. Even though he only covers about 3,000 miles per year -- using it just for weekend trips -- he had, until recently, been getting no special deal on his insurance for driving so little.
Six months ago, the Springfield, Missouri property supervisor found a policy that gives him a break. So far he's saved about $48 -- or ten percent -- over six months compared to a traditional premium.
There's a catch; his insurance company, Progressive, is monitoring every move he makes behind the wheel.
Goodwin is fine with it, and says that just knowing that a small transceiver is reporting his driving behavior back to the insurance company helps him drive more carefully.
"There's this Big Brother thing, but it's good," Goodwin said. "Since I know I'm being watched, I'm on my best behavior."
THIS IS IT! This is the hidden cost folks. Your Freedom. THIS is the mentality that allows Tyranny to take place. Well, I can't be free. I can't live right, unless I am monitored. I NEED someone else to control me. "It's good." {sigh}
Goodwin noted that he's now less likely to speed.
"You'll, in effect trade a degree of privacy for a lower rate" in such a pay-as-you-drive policy, explains Mike Barry, vice president of media relations for the Insurance Information Institute. "They know not only how many miles you drive but how and when you drive."
At least they are being honest here. So will the Government with the GPS Tax as you go thing. Make no mistake about it. They will know where you are and what you are doing at all times. People LIKE this. Unbelievable.
For now, MyRate is the only widely available pay-as-you-go auto policy -- available now in nine states (Alabama, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Missouri, New Jersey, and Oregon), with at least three more expected by the end of the summer. There are "tens of thousands" of drivers already enrolled, according to Progressive, and one in four existing customers of the company who've become eligible for the program have opted in.
Progressive's Pay As You Drive DeviceProgressive says that MyRate may save up to 25 percent versus a traditional premium if you travel less than 10,000 miles per year, are a defensive driver, and rarely drive past midnight. What bad behaviors does the system look for? Sudden starts and stops, and driving during higher-risk times, will raise the rate -- by up to 9 percent in states where a surcharge is permitted. Progressive says that if you drive even once a week between midnight and 4 a.m. the policy probably isn't a good choice. On the flip side, smooth rural drivers who cover more than 15,000 miles a year could also save 20 percent or more.
So do not go to far. Stay close to home. Or better yet, gather together in clumps that the Government can keep a better eye on you. The article goes on to say this.
While privacy advocates might already be up in arms over the data set -- which won't be shared with third parties but could be kept for up to six years -- they'll be somewhat relieved to hear that MyRate doesn't have GPS capabilities. The system knows 'when' and 'how' you drive, but not 'where.' For that, we'll leave the controversy to the GPS locators in cell phones.
And of course the Governments GPS Tax Milage program.
Tracking exactly where users go would create serious privacy concerns, admits Steve McKay, product manager for MyRate.
"Knowing location wouldn't add a lot to the predictive value either," McKay said.
The state of California in 2006 outlawed the pricing of policies by zip code, along with several other factors.
Although the future of pay-as-you-drive plans might rest in GPS-based systems that do track where you go, it's now looking like a distant future. California has also recently adopted new regulations that set the framework for pay-as-you-go policies, but the state's insurance commissioner, Steven Poizner, is especially conscious of the privacy concerns that the technology brings.
"I will not approve any auto insurance policy that aims to utilize GPS devices in order to obtain location data from consumers," Poizner said in a release last year.
Well, isn't that nice of him. OH, get this.
Nudges Drivers To Be Safer And Greener
Drivers might simply choose pay-as-you-drive policies to get a break on their premium. But it'll likely save them even more in the long run; because they'll probably drive their cars gentler, get better gas mileage, put less wear on their vehicles, and be less prone to getting tickets.
"Just leaving the device in your car changes your behavior," Allstate spokesman Raleigh Floyd said. Because the company is scoring the driver's actions and there are measurable rewards for good behavior. "It becomes more game-like--and the benefit is that you're a safer driver."
Even Goodwin admits that he finds restraint in his Tahoe when he wouldn't have before.
"Now when I just want to floor it, I don't," he said.
They're likely to reduce their trips as well. According to a report from the Brookings Institution, if motorists paid for their auto insurance by the mile, driving would decline by about eight percent nationwide, significantly reducing carbon-dioxide emissions and gasoline consumption, and nearly two-thirds of drivers would pay less for auto insurance.
Major environmental groups and safety advocates are also on board; the ten-percent decline in driving anticipated by the Environmental Defense Fund would not only reduce air pollution and toxic runoff but also translate to saved lives, through a 17-percent reduction in crashes.
Of course. If this works, and they can get enough people on board to see this as a good thing, watch, it will become LAW. The Government will make sure that you all have one, in the name of saving the planet of course. Besides, as this Idiot CLEARLY stated, "We can not control ourselves, we need someone else to do it.
Sorry folks, I'll say where, when, and how, I drive. I do not need the Insurance Company to control me, nor do I need the Government. You can if you think this is good. As for me, I'll opt out. Thanks but no thanks.
Peter
Sources:
AOL- Auto - Big Brother, Big Savings
4 comments:
Hell that's nothing; wait until they begin planting chips in our clothing, homes and our heads.
OK, so you disagree with these insurance policies. I understand your hesitation.
Here is my question:
What is your alternative solution? As an insurer what would YOU propose to ensure fair premiums for safe, low-mileage drivers? How would YOU encourage people to drive less in order to help the environment.
It's all very well and good to spout conspiracy theories and doomsday predictions about the end of our privacy, but at least these insurers are attempting to make a positive difference in their industry.
Hey D.S.,
Yeah, it's coming. They are already experimenting with the Med Chip. Before you know it, we will all have to have a Chip for Finances and Health Care. It seems to be coming faster than anyone thought.
Peter
Hey Questioner,
Welcome to the OPNTalk Blog. Glad you stopped by.
Fair Questions.
What is your alternative solution? As an insurer what would YOU propose to ensure fair premiums for safe, low-mileage drivers?
Pretty much just like a lot of them do. Cheaper rates and charge those who have proven to be bad drivers, MORE. Really bad drivers should be taken off the road all together.
I also think that there should be a test based on age.
"How would YOU encourage people to drive less in order to help the environment."
Sorry, but for me to answer this question, I would have to accept your premise that there is a problem with the Environment. I do not see any threat to our environment whatsoever based on REAL Science. Global War,,,uh, Climate Change, Man-Made Climate change, is a SCAM. So I see no need to "Fix it." Sorry.
Peter
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