Auto Insurance Premiums Falling for Safe Drivers from GPS Navigation Reporting

The TomTom GPS system will be developing a specialized navigational system called the TomTom PRO 3100. This GPS system will be built to assist insurance companies in tracking the driving habits of their customers.

Auto insurance companies are on the hub of releasing new policies that will allow their policy holders to pay less if they have safe driving practices. While this could be extremely beneficial the system may also work as a disadvantage seeing that it will be tracking all of the policy holders driving and will drive up their premiums for unsafe driving practices.

Auto insurance companies are trying to find ways to help their customers save money, and to single out the unsafe drivers that hold policies with them. The overall goal is to charge the higher rates to the individuals with unsafe driving practices, so that they safe drivers do not have to pay the additional money that is currently divided out among all of their policy holders.

Currently most auto insurance companies will rate the price that their policy holder pays based on their record, how much they drive, and the type of car that they drive. Some vehicles have more safety features than others, so the auto insurance company takes that into consideration when working out the policy holder’s premium. This means that if someone is driving around in a classic Porsche that has no seatbelts or airbags than their insurance will be much higher than someone that drives around in a current model minivan with all of the up-to-date safety features. A big factor in current auto insurance prices is simply the amount of miles that a person drives in a year. Someone will pay higher insurance premiums if they average around 20,000 miles per year versus someone that averages around 10,000 miles per year. This is simply due to the fact that the person driving twice the amount of miles is more likely to be in an accident or need to file a claim due to exposure.

The GPS tracking system is setup to not only help insurance companies, but to encourage safer driving. Many people will change habits that cost them money, and if they are paying higher premiums due to unsafe driving practices than they will most likely become more conscious of their driving habits.