Auto Insurance Premiums Surging -- fastest rate in 47 years

I got my State Farm automobile renewal a few weeks ago with an 11% increase. Then State Farm sent me an e-mail offering a premium reduction of up to 30% if I sign up for their “Drive Safe & Save” program which combines a smartphone app with some kind of transponder you attach to your windshield that measures rapid acceleration and sudden stops. I got an immediate 10% reduction for signing up and I may get more savings depending on the data the app collects. State Farm said they won’t use the app to jack my premium. You’d need a chargeable accident for that.



USAA my rate went up $0.47

Not every insurer is honest. Just say’n.

No driver safety program/app.

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Several years ago, I used Progressive’s “snapshot” thing, which plugs into the OBD socket and monitors for, iirc, 6 months. They did knock some bux off of my bill. At the end of the monitor period, they told me to mail the device back to them.


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Do you know exactly what data it collects? I always assumed they are collecting speed as well. Are you doing 65 in a 55 kind of thing. One big problem with that, out of date data. My SUV has a heads up display that shows speed as well as the posted speed limit. Was accurate 90% of the time the first year but now is a 50/50 proposition despite getting updated maps/info. So they could be dinging you for chronic speeding when you are not speeding.

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iirc, the Progressive device records G loads, from rapid acceleration and braking. The perverse incentive then, is that, rather than stopping a bit short, to obey a traffic signal, and tripping the monitor, the incentive is to cruise on through the intersection even as the light is turning red, so as to not generate a G load that would trip the device.



I don’t know. I got a 10% premium deduction just for signing up, I still haven’t taped the transponder to the windshield.

Since I make it a point to walk everywhere within a 3 mile radius of my home for the exercise, and I live in a high density suburb, I often go 2 weeks without taking the car out of the garage. State Farm may well assume that the vehicle has been abandoned. I did my 7,500 mi oil change last year, and the previous oil change was 5 years prior. I’m literally only driving 1,500 mi./year.



My reading is that the outboard devices are measuring only G load - both rapid starts and stops. They don’t have enough capacity to compare to maps, speed limits, etc. (*That could have changed.)

I have also seen that newer cars may have that capability and are selling that data to brokers who sell it to insurance companies. They can’t tell if you run a red light but can if you roll through a stop sign or jack-rabbit at the turn of a green light.

I haven’t read anywhere that the insurance company has confirmed any of this, but that’s to be expected, I guess.