Auto Insurance Claims: Insurance, state insurance commissioners, commissioners office

Question
Can insurance companies put a chip in your car or truck to see how fare you drive?

Answer
Hi Michael,

There are some companies that are experimenting with systems that determine how far you drive, how fast you drive, etc. They are planniing to base the premiums on this data. If a company you are with is asking you do install a chip for this purpose you should ask them if it is a requirement. If they say it is and you do not want to participate then all you can do is purchase insurance with another company that does not have such a requirement. An insurance company if generally free to establish what ever rules or requirements that they want. However, they usually need to have approval from the state insurance commisioners office. If you have concerns about this practice you can check with your state insurance commissioners office.

I hope this helps
Richard Hixenbaugh