Pay-Per-Mile Car Insurance & Telematics devices
 

Time for our annual car insurance renewal, and my wife would like for us to consider switching to a pay-per-mile insurance policy instead of a regular policy. On one hand, it makes sense as we both average around 5000-6000 miles per year. The Agent estimated the "break-even" point would be somewhere around 8500 miles/car. But in order for them to track our mileage, we have to install an actual device in the car and/or phone app. This is when the red flags start to appear for me. I am very well aware that we are tracked as much as technologically possible. From computer, to phone, to credit cards, and everything else. Do I now need to add another tracking device?

One quote we received is for Allstate Milewise. We would have to install a small device into the car (plugged into OBD port) and download their app. The rate is calculated as a combination of:
- Fixed Daily Rate
- A Per-Mile Rate (capped at a certain maximum per day so the occasional road trip doesn't bust the budget)

But they also track the following which would reduce the discount (thus increasing your daily rate):
- Limit sudden braking
- Keep speeds below 80mph
- Limit late-night trips between 11PM and 4AM

As part of their brochure, they also show a route map that shows where you were driving and when "negative" incidents occur. So there is also true GPS functionality built into it. While I'm not that worried I would get dinged for any of the driving behavior issues (certainly not the 2nd/3rd points), it just feels to me like another Big Brother is Watching scenario.

So I ask whether any of you have experience using this type of insurance program? Am I just being too paranoid to sell more of my privacy to save money? If the Agents' estimate holds true, we would probably save ~20% annually ($400ish). Would that be worth it for you to make the switch?

I worked for Progressive for years, and while I don't know the inner working of their similar device which was called Snapshot, I wouldn't do it to save $400. It isn't about the privacy or data for me. My recollection is we would hear a lot of people claim it is too touchy, specifically with the hard breaking. I also wouldn't want it to enter in to my mind literally every time I was behind the wheel., or if someone was going to borrow my car.

That being said, I would imagine there isn't any kind of contract so if you tried it and didn't like it you should be able to switch pretty easily.

Hard-braking seems to be the most common complaint I found as well.

Wouldn't touch that with a ten foot pole.

Wouldn't work for us anyway on the mileage basis but it's a hard no regardless afaic

It would be a hard no for me too. No additional tracking, thanks.

That's certainly how I feel. Now I need to convince the Mrs.

I teach in Ireland in the summers and we usually rent a car. Pre-covid we rented from Europcar and each night they would send me a "score" based on proper shifting, speeds, etc. It was kind of like a game for me because it usually took me a few drives to really get used to shifting with my left hand and things like that. But after a while it seemed a bit obnoxious and intrusive. I don't know why we let our phones listen to our convos and track where we shop and use our credit cards, but cars is where we draw the line. I guess my big thing is I would not want to get a note one day that my rate was going up because I had too much "hard braking" defined by their algorithm, or something similar.

When Mrs Tyke asked which policy we should go with, I started listing my privacy concerns. Surprisingly, she stopped me right away and said she was also in agreement with not going with the pay-per-mile policy. Thank you all for the sanity check!

I didn't even know about this. Man, you'd have to be giving me a lot more than 20% savings to even consider something like this.

SI

I used that Progressive device after my divorce in 2010. I've long forgotten what I saved but it was a good chunk of change per month. That was a fairly significant thing for me at the time...I was paying half a mortgage, my apartment rent, and trying to get out of the mountain of debt my ex-wife provided me. It was a big relief.

That's why it puzzled me when the renewal came in that they wanted me to pay even more than before I used the device. I remember being on the phone with someone in customer service who just had a terrible time explaining it. No accidents. No tickets. No real reasoning.

I switched companies with a quickness and I've been with them for about 12 years now.