Usage-based auto insurance comes to Utah

usage based auto insurance utah
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usage based auto insurance utahAllstate introduces new auto insurance program in Utah

Auto insurance is taking a new turn in Utah. Drivers throughout the state will now have an opportunity to save money on their auto insurance coverage, thatnks to Allstate’s DriveWise program. The program is designed to gather information concerning a person’s driving habits and use this information to price coverage. This information is gathered through a simple device that can be installed beneath a vehicle’s steering wheel. Alternatively, On-Star using can also take advantage of the program without having to install an additional device.

Device collects driving information from consumers

Once the device is installed in a car, it can track a person’s driving habits and logistical information like speed and mileage. This information is then directed to Allstate, which uses the data to adjust auto insurance prices for drivers participating in the program. A month’s worth of data is needed before the insurer can adequately adjust prices, but Allstate believes that drivers can see major savings on their auto insurance coverage in the long run.

Esurance pioneers usage-based auto insurance

Allstate is not the first insurer to introduce this kind of usage-based auto insurance program. Esurance was one of the first companies to introduce this service to the auto industry. In fact, it was this sort of program that attracted the attention of Allstate in the first place, who purchased the company in May 2011. Since acquiring Esurance, Allstate has been working to incorporate usage-based auto insurance programs into its structure and has relative success over the years. The trend is becoming increasingly common in the auto insurance market.

Some consumers are leery of data collection

Consulting firm Towers Watson suggests that usage-based coverage is an auto insurance revolution. A large number of consumers have shown interest in usage-based insurance because of the potential savings they can see on coverage. There are privacy concerns, however, as such auto insurance programs collect a driver’s information to affect financial aspects of coverage. Some drivers suggest that this is a breach of privacy and have shown no interest in usage-based auto insurance programs.

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