I knew this title would get your attention! All jokes aside, this topic has been discussed over and over since the beginning of the auto insurance industry — “How Can I Lower My Car Insurance Rates?”

I’m sure when you asked this question to your insurance agent they gave you the same tried and true responses:

  1. “Our company has taken a slight rate increase for all drivers in your area”
  2. “Your car is getting older, therefore it is costlier to repair in the event of a claim”
  3. “Looks like you got another seat belt ticket”
  4. “You are getting older, insurance actually increases as your age increases”
  5. “Looks like your credit score made your rate go up”

I’m sure at some point you heard one, or even two of these explanations over time. I am also sure that the solutions provided to reduce your rate were: Reducing coverage, paying in full, going paperless, or rewriting your insurance to a new company that you never heard of.

Wouldn’t it be nice if you could reduce your auto insurance cost without reducing coverage, or making changes to your policy? What if your rate could be tied to your actual driving habits? Well the day has arrived, and it is called Auto Telematics.

Lower Auto Insurance Rates for Good Drivers

More insurance companies are starting to use telematic devices in the rating of auto insurance policies. Some companies do this with a device to plugged into your car, and a few have developed an app for your smartphone. Typically, these devices monitor breaking, miles driven, time driven, idling, and in some cases, speed. All should exclude location monitoring since it would be illegal. The information is gathered over a 3-6 month period and the data is sent back to the insurance carrier.

If your driving habits are good, you could earn anywhere from 10-30% off your auto insurance rate. The best part is, most carriers will allow this discount to apply for the life of the vehicle on your policy. Most carriers will allow you to use this device for all your cars as well. Just think, you could be rewarded for your good driving habits, and pay an insurance rate that is fair based on your specific use of the vehicle.

We suggest that you contact your insurance agent today to discuss adding this program to your insurance policy. If you would like Homestead to help with your auto insurance needs, just give us a call, send an email, or shoot us a text.