Can allowing companies to track your driving help lower your car insurance rates?

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Auto insurance rates are on the rise, and you probably know shopping around can save you money. But in addition to calling, you can also download an app to help you save. A colleague from KPRC 2 did it and he shared his experience with us.

“I was like, ‘Hey, I’ve got nothing to lose, what the hell is that?’ And I did it!” said Charles Holmes.

Our KPRC 2 news teams travel many miles every day to get from story to story. So when KPRC 2 photographer Charles Holmes told us how he cut his insurance premiums, we had to check it out.

The company credit karma used its app on Holmes’ phone to track his driving for a month to find out if he qualifies for lower car insurance rates. Credit Karma is best known for giving out free credit scores, but the company also has something called Karma Drive.

“I just gave him permission to monitor my phone, my driving habits,” Holmes said.

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Usage-Based Pricing

Rory Joyce, managing director of insurance at Credit Karma, says more and more companies are moving towards this “usage-based pricing”.

“How about paying for insurance based on your actual driving habits,” said Rory Joyce.

First, the company follow your lead.

“We’ll give you feedback on things like, are you braking too hard? Accelerating too fast,” says Joyce.

Karma Drive then takes your driving results and searches for the best rate with Progressive. They are not currently checking other carriers’ plans, but are working to expand in the coming months. They say 80% of drivers who try it qualify for cheaper rates.

You may be able to save money on auto insurance by letting companies monitor your driving. (Copyright 2021 by KPRC Click2Houston – All rights reserved.)

Driver Tracking Results

BEFORE: Holmes was paying State Farm $1,582.95 for six months of two-vehicle comprehensive insurance with a $1,000 deductible.

AFTER: As part of the tiered policy, Karma Drive discovered that it had obtained a six-month policy for $1,000. But Progressive demanded a deposit of $250. In total, this is a saving of more than $55 per month.

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His deductible doubled to $1,999 and Holmes says he can live with that.

But we also noticed another coverage he dropped with the new progressive font. It does not have car rental coverage, personal injury protection, or uninsured property protection.

More car insurance companies are now tracking driving habits

We found several car insurance companies that use real-time driver tracking to help set rates. Geico, At national scale, state farmand Allstate all offer tracking app versions.

More and more companies are following drivers to set insurance rates.

While your results may mean lower rates if you’re already a customer of some of the carriers, it could also increase your rates. With Karma Drive, if the app shows your driving habits aren’t so hot, no one needs to know.

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“We only share your data when you say everything is fine. Your rate will never go up because of that,” says Joyce.

Of course, everyone’s results will be different. It’s just a place you can check that you might not know.

Check the best car insurance rates at least once a year

Joyce explains several reasons why you should check your car insurance rates once a year. Violations could now be off your record. Plus, inflation, gas prices, and repair costs are rising, so considering a switch now could save you money in the long run.

To download the Karma Drive app: https://creditkarma.app.link/qa66z3ir9fb

Copyright 2022 by KPRC Click2Houston – All Rights Reserved.

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