Programs that can save you money on auto insurance

Grand Rapids, Mich (WOTV) - Insurance companies might be able to give you a break on auto coverage premiums if you can prove
to be a safe driver and one who log fewer miles. If that sounds like you, you'll have to prove it. In a
growing trend, insurance companies are cutting premiums for drivers willing to attach electronic
devices to their cars to verify how far they drive each month and show that they are not aggressive
drivers. Here's a sampling of the programs.

Mileage measurement - GMAC Insurance's low-mileage discount plan is a program for owners
of General Motors cars who have the OnStar service. OnStar, which also can alert an operator to
call 911 in an emergency or remotely diagnose a car's problems, reports actual miles driven for
subscribers who sign up for the insurance plan.

Discounts are based on how much less than 15,000 miles you drive in a year, although there is no
penalty for driving more.

Mileage plus aggressive driving - The Snapshot program from Progressive Insurance is even
bigger and involves more data. It has 100,000 customers and is available in 30 states. With
Snapshot, you plug a device about the size of a garage door opener into your car's diagnostic port
(often under the dash below the steering wheel).

For 30 days, this gizmo sends data back to Progressive about how many miles you drive at what
time each day and attempts to discern if you are an aggressive driver. (Lots of braking translates
as aggressive since—annoyingly for the rest of us—tailgaters hit their brakes a lot). After 30 days,
Progressive will tell you, based on your mileage and driving habits, whether you qualify for a
discount.

Mileage plus speed - While other programs don't measure your speed, Allstate's Drive Wise
program doesn't shy away from that.

The device installed for Drive Wise will note any time you exceed 80 miles per hour (mph). In
addition to your mileage and episodes of hard braking and aggressive acceleration, Allstate pledges
not to penalize you for enrolling in the program. If you do register speeds of more than 80 mph, the
company says it still will not raise your rates. But if you show up as among the safest drivers, your
savings could be up to 30%.

Content in part provided by Credit Union National Association. All topics for informational purposes only and are not intended to provide legal advisement.