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Driver tracking can save money on auto insurance

A major insurance company offers a tracking module that may lead to reduced auto insurance costs

An Ohio-based auto insurance company is offering policyholders a system that will track their driving behavior and report it back to the company, an NBC affiliate in Cleveland reports.

According to WKYC, the insurance company’s electronic module plugs into a car’s data port, typically found under the steering wheel. A cell phone chip is embedded in the module, which can pull data from the car’s on-board computer and report it back to the insurer.

The module can record average speed, mileage, time of day and how hard the brakes are applied, WKYC says. Policyholders who claim to be safe drivers now have the opportunity to prove it to their insurance company and get lower rates.

“It seems a little too much like ‘big brother’,” a Cleveland resident, Suzanne Stan, was quoted as saying. But another person interviewed by WKYC, Maria Sharron, said, “I would opt in because I have no problems with my driving.”

The module does not have a global positioning system chip, the auto insurance company says, so it can’t report where a driver goes.

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Posted: December 15, 2009

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