Are you a good driver? Then, you may be surprised to know good drivers pay for bad drivers when it comes to auto insurance. If you’re the good driver you’re probably overpaying and if you’re a bad driver you’re probably not paying enough.

To quote Bob Dylan, as he says “things they are a changing.”

Have you heard of “paying for auto insurance based on your driving habits” (and not everyone else’s’?) That is here and picking up speed. Should you consider it? Maybe. Read on….

Here’s how it works: the insurance company monitors certain driving habits such as speed, time of day driven, acceleration, braking and miles driven annually via a small device the owner plugs into the car’s diagnostic port. Keep in mind that if you have a smartphone you’re already sharing more than you would with one of these devices plugged into your car. Actually, smartphone apps that do this are already out there and will eventually replace the plug in device. Kind of like Fitbit for your car!!!

These driver-monitoring programs have been tried in various forms by insurance companies since the 90’s without long term success but as technology has improved so has the ability to do this easily, collect the data and quickly determine the cost of the auto insurance. The end goal is to allow drivers to pay a more true cost of auto insurance based on their driving habits. Good drivers benefit with lower auto insurance pricing, the data overwhelmingly supports this. Right now we are seeing discounts up to 30%, which adds up to several hundred a year in savings.


McGhee Insurance Agency offers this as an option through Safeco Insurance Company, a Liberty Mutual Company, and Progressive. Both excellent companies. The discounts available are substantial and more importantly allow you to pay for your driving and not everyone else.