Usage based insurance launched by Allstate in NY

New York auto insurance
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Safe drivers in New York will be able to take advantage of potential savings on their premiums.

Progressive may have taken the first steps into New York with usage based insurance, but Allstate isn’t far behind, and is now offering drivers in the state the opportunity to save money on their monthly premiums based on their safe driving habits.

Motorists that demonstrate a New York auto insurancelower risk of making a claim may save money every month.

The Allstate usage based insurance program is known as “Drive Wise”. Though it is only just getting started in New York, it is already widely available to drivers in New Jersey, Michigan, and Colorado. Furthermore, it has been offered to customers in Ohio, Arizona, and Illinois since 2010. According to the company, the service is available to the majority of its customers within those states.

Usage based insurance uses a device installed in the vehicle to monitor driving behaviors.

These devices transmit driver data such as speed, braking, mileage, time of day that the vehicle has been used, and other information that can help to indicate the type of risk presented by the driver based on the way the vehicle is used.

When a customer enrolls in the program and has the device installed in his or her car, he or she will automatically receive a 10 percent discount on the premiums paid every month. After the first six months that the device has recorded its data, the initial enrollment discount is replaced by one that is based specifically on the driver’s behaviors behind the wheel.

According to the insurer, approximately two thirds of the customers enrolled in the usage based insurance program will receive an even greater discount than that which was automatically assigned to them upon enrollment. In fact, the average discount that has been achieved is 14 percent.

The Drive Wise usage based insurance unit is plugged into the vehicle’s on-board diagnostic port, which is located beneath the dashboard of the majority of cars. It is estimated that approximately 12 percent of all new Allstate customers have enrolled into the Drive Wise program within the states that it is available.

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