Surely by now you’ve heard of the usage-based insurance programs that are hitting the market lately.
If not, we’ll have to have a long hard talk with our pal, Flo.
Usage-based insurance programs, or Pay-As-You-Drive programs, reward good driving habits with a permanent discount on the participating vehicle, usually up to 30% of that vehicle’s premium for as long as that vehicle stays on the policy.
The technology that allows this is a small device inserted into your car’s OBD-II port (the port mechanics use when you take your car in for work) for several months, which records your engine activity taking notice of events like hard stops, rapid acceleration, total number of miles driven and the time of day driven. Vehicles driven a lot between midnight and 4am, as well as vehicles in a lot of stop-and-go traffic may not land the best available discount.