Mileage Verification Insurance

Thanks for sharing this!

Are you a disgruntled car insurance customer? Are you tired of paying big bucks for coverage even though you’re a low mileage, safe driver?

If so, you’ll be happy to know you might soon be able to choose a new insurance option that can reduce your premiums.

The option, known as mileage based, usage based, or mileage verification insurance, is being tested by several US insurance companies in various states, with one company already announcing a plan to adopt the system nationwide.

Here’s how it works.

When you sign up, your vehicle will be outfitted with a monitoring device. The device’s function is to send information about your driving habits to your insurance company. It records, among other things, sudden stops, speed, miles driven, daytime, nighttime and peak hour use.

The idea is the same as power company demand management or time-of-day billing programs, which offer reduced utility rates when you agree to use electricity only at selected times. In the case of your vehicle, if you do most of your driving during non-peak hours, your insurance premium could be recalculated to a lower rate.

That’s a good thing, right? Perhaps—or perhaps not.

While insurers have an eye on the bottom line—they hope the new option will ease gridlock, decrease roadway accidents and reduce pollution—consumer advocates worry about yet another privacy invasion.

The mileage based option is voluntary, so the decision is yours. And since states are still working on regulations, you have time to put a few more unmonitored miles on your car before making up your mind.

You might also like these posts

Article – Preparing for Hurricane Season Image source: By Nilfanion , via Wikimedia Commons. The map shows the tracks of all tropical cyclones which formed worldwide from 1985 to 2005.The Atlantic hurricane season begins June 1. While the 2014 season is expected to be a mild one, mild doesn’t mean storm-free. Getting ready early is a good idea—and early preparati...
Article — Locked Out Image source: UK, public domain, via Wikimedia Commons What’s on your computer? Your manuscripts? Work? Photos? What would you do if you were denied access to those files—if you were locked out by rogue hackers? If you’re shaking your head because you think nothing on your computer is of value to hackers, consider th...
Article — Tax Identity Theft Awareness Week Image source: Taxes are scary enough, without adding tax identity theft to the mix. The costs—$3.6 billion a year according to an estimate by the US Treasury Inspector General for Tax Administration—are scary, too. Unfortunately, both tax ID theft and the costs are on the rise. The US Federal Trade Commission...
Article — Your 2013 Federal Income Tax Return Image source: Whether you’re a part- or full-time freelancer, receiving income means filing a tax return. Here are three things to keep in mind as you look back at your 2013 business activity. Dates: The IRS will begin accepting 2013 business returns on Monday, January 13, 2014. For individual returns, the da...

We write. Visit us in Carpenter Country, a magical place that, like our stories, is unreal but not untrue.

Posted in Articles Tagged with: ,