Your Insurance: Understanding auto insurance discount programs

Let Bill Rowlen safely and securely guide you through the insurance marketplace.

Most insurance companies on the market today have discount programs available for their auto insurance customers under the category of telematics. A telematics program is a way to earn a larger discount on your auto insurance policy in exchange for electronically sharing some of your driving behavior. The idea behind these programs is if you are a safe driver, then you should qualify for a better rate on your insurance. Telematics programs are completely optional and may not be a fit for everyone. They are however one of many options to help manage your overall insurance costs. If your agent has not discussed telematics as an option, connect with us to see how it can save you money on your auto insurance. 

What are the benefits and why would I want to participate? 

  • Safer driving behaviors earn you larger discounts on your auto insurance policy. 
  • Most companies have a 10% discount just for participating
  • Most programs are temporary 
  • Discounts stay on for the life of your policy, even if you change vehicles. 

What kind of discount can I earn?

Most insurance company programs have at least a 10% participation discount available for simply signing up. Total discounts can go as high as 30% of your annual premium. Most customers end up earning some sort of discount after an evaluation period. 

Can insurance companies charge me more based on the results?

Full disclosure – Select companies do have a surcharge that will be applied if it appears the monitoring is trending in a negative direction. Most companies will also have an opt-out period available. Most customers do earn some sort of a discount. 

What are the driving behaviors insurance companies monitor?

Most companies will monitor the same set of criteria they have found to equate to safer driving. Those factors may include hard braking, hard accelerations, and late-night driving. Some companies also monitor speeding over 80mph and distracted driving. They are currently not monitoring speed relative to the posted speed limit. 

How long do they monitor my driving behavior?

Most companies have an evaluation period of approximately 90 days. 

Working with families as their trusted insurance advisor is what we do every day. Connect with us for an insurance review and to see if one of these safer driving programs is a good fit for your insurance portfolio.

Flury-Hinderks Insurance is an Independent Insurance Agency located in Overland Park and is a trusted advisor for thousands of families in Johnson County. Contact Flury-Hinderks Insurance today for a comprehensive insurance review.