The battle over auto insurance ranges across many fields. It seems that one recent issue is whether or not drivers can transfer their continuous driver discounts when they transfer from one company to another. Insurers and consumer affairs advocates both claim to be trying to get the best deal for the end user. How is anyone to know what is really going on?
Another type of insurance that is meant to save some users money is 'pay as you drive' insurance. The idea behind this initiative is that you only pay for the miles you are actually on the road. It sounds like a great idea. It could be ideal for those of us, particularly older people, who do not drive much anymore. It could also be great for people who use public transport five days a week to go to work but want to have the option to use their cars at weekends.
When you buy 'pay as you go' insurance, you purchase a specific number of miles. If you exceed that number of miles, you pay for more. So there is no danger of not being covered because you out drove your insurance. Could there be anything negative about policies of this kind? Well, some people have found things to complain about. For one thing, the question of whether or not this type of policy will save you money is not easy to get a firm answer to. And as we shall see below, it could cost you more in the long run depending on what sort of driver you are.
Another contentious issue is whether or not the consumers' privacy rights are being infringed due to the use of tracking devices. Some people claim that tracking devices associated with this auto insurance monitor all sorts of things related to the way the car is used such as speed and location of the vehicle. The information gathered can be used to assess the driver's safety record, in addition to collecting information about mileage.
But is there any harm in trying to analyze a driver's safety record? I find it difficult to see how this is a major privacy infringement. If you are found to be an unsafe driver as a result of this monitoring, perhaps you and others on the road could benefit from a recommendation that you take a safe driver course.
The potential harm is that having categorized you as an unsafe driver, an auto insurance company may want to increase your premium. This is pragmatic on the part of the insurer and unfortunate for you. But I find it very difficult to see this as a serious privacy infringement. Civil libertarians may see it as sinister, but I'll leave it up to you to make up your own mind.
Some auto insurers who offer 'pay as you go' policies claim that they do not use tracking devices. If you are a safe driver, if you do not use your vehicle much at all, this may be a good option for you. As always, in the quest for affordable auto insurance, ask plenty of questions and make sure you get the best deal possible.
