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Time to clarify what Geico, State Farm, and OnStar are selling you

No to in-car monitoring

Progressive claims this tool is used for discounts only

“You’ll save with our snapshot discount,” “State Farm has identified you as driving a vehicle with OnStar built into it. We are offering you a discount for having this service.” and there are many other examples of this.

Let us get to the heart of what this is.

For those of you who like to drive all over town but tell your insurance carrier that you drive to work and back only, these devices will root your out and you will receive a hefty price increase instead of the promised price decrease.

Someone would have to be nuts to allow any insurance company to monitor your activity, your driving habits, or let OnStar share your driving information with anyone. Why?

Simple…if you have ever heard of the term “red lining,” which is taking the crime statistics from any community and drawing a red mark on a map and anyone living or working in those areas get to pay higher car insurance rates because you are more at risk than someone who lives and works in a more affluent part of town.

That means that, in terms of odds, you are more likely to have something happen to your insured vehicle. It also means that the insurance company is more likely to see a claim from you.

So enter this world of “snapshot”,”OnStar”, and the various other devices insurers are trying to dangle in front of you attached to a word, “discount”, in order to get you to bite.

And enough people are biting on this lure and companies like Geico, Progressive, State Farm, All-State, and many others are trying to do anything to get you to let them spy on you more than they already are.

But the information that those devices record about your driving habits are tied into your computer. So if you change cd’s or the radio station while driving, if you change lanes without signaling due to a driver or animal moving into your path, or even something as innocuous as braking too severely will count against you and your discount will eventually morph into a significant rate increase.

From the Snapshot provider’s website about the device:

“Data We Collect:
The Snapshot device records vehicle speed and time of day, and when the device is connected and disconnected from the vehicle. It also records the Vehicle Identification Number upon installation. Other information, such as miles driven and rates of acceleration and braking, is derived from the speed and time information recorded by the device.”

Think about this…insurers tie your credit record into your auto insure rate. They tie in things like non-fault accidents into your rate. That’s not to mention the number of times you’ve been uninsured or placed into a high risk pool.

In short…don’t do it. Keep insurers out of your car unless of course, you are the perfect driver and you never drive anywhere except to home and work or home and school.

And for the record…this is, in my opinion, a polite way of asking “can we please put spyware on to your car’s computer to monitor you?”

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