Should You Let Your Auto Insurance Track Your Driving?

The answer depends on several factors. Nearly all carriers now offer some form of optional tracking, called telematics. Sometimes it's an app you download to your phone, sometimes it's a gizmo that you plug in to your car. Generally, they track such things as speed, location, distance, harsh braking, rapid acceleration, etc. These factors are then analyzed to determine a rating or score for your overall driving habits. If you score within an acceptable range, you may qualify for discounts on your car insurance. So, whether or not you should allow this depends on how comfortable you are allowing the tracking and how much you want or need the discount. Here are some things to ask your agent when considering using telematics:

1. For how long will my driving habits be tracked and can I see the results?
Some carriers only track driving for a limited amount of time to establish a baseline, then it is discontinued. Other carriers require you to be tracked the entire time you hold the policy.

2. Is there an opt-out period?
Once you sign up, is there an opportunity to opt out if you change your mind later? One carrier allows you to opt out after 45 days so if you see that your rating is below the acceptable range, you can simply drop the program with no negative consequences.

3. What if I am a passenger, rather than the driver?
Travelers, for instance, uses an app on your phone. There is an option at the beginning of a trip to state you are a passenger so that trip isn't tracked.

4. What is the discount and for how long is it in effect?

Keep in mind that most of these trackers are highly complex algorithms that account for local traffic patterns. For example, if you are driving through a major city at rush hour, keeping up with the pace of traffic likely won't hurt your score if traffic is moving faster than the posted speed limit.

So, should you let your driving be tracked?

YES - If you are generally a good driver with safe habits, and you want to lower your rates.

NO - if you are a less careful driver, don't need a lower rate, and are not comfortable with your driving habits being monitored.