Should you use an app that tracks your driving?

Insurance companies want to incentivize their customers to practice safer and more cautious driving. One way that they do this is to offer a discount if you use an app that tracks your driving. These apps use your smartphone’s functionality to collect data on your driving – how often you drive, how fast you drive, they can even tell how short you stop! It’s important to weigh the pros and cons of these apps before agreeing to use one:

The Pros

• The most obvious pro of using a safe driving app is a lower premium. Even agreeing to use a safe driving app and downloading it to your phone may automatically save you money on your premium. From there, if you are deemed a “safe driver” by your insurance company, you may be entitled to even more savings. Be sure to connect with your agent to determine what constitutes a “safe driver.”
• Another benefit to using a safe driving app is it may actually make you a more careful driver. On most apps you’re able to view a summary of your driving habits and users have reported that seeing these metrics has helped them improve their driving.
• The apps are typically very easy to install and use. The days of having to install a third party piece of equipment in your vehicle are over. Your phone is usually all you need!
• Some apps offer additional benefits such as roadside assistance and theft tracking. Your insurance agent will be able to help you determine what added benefits are offered to you.
• A safe driving app will allow you to prove to your insurance company that you’re a safe driver, thus lowering your rates!

The Cons

•If the insurance company deems your driving as “unsafe,” they may add a surcharge to your policy. However, often times the company gives you a “test period” to see if the tracking app is right for you. Each company varies, so it is important to know the specific information for your company.
• Agreeing to use the app gives the insurance company access to certain data, sometimes including location data. It’s important to determine how much data you’re willing to share with your insurance company before you sign up.
• It’s possible that your insurance company may use the data from your safe driving app to assign fault in an accident claim. Driving apps may communicate certain data to your insurance company, but they don’t tell the whole story.

Reach out to an agent at American Insurance today to talk through the pros and cons of using a safe driving app!

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