insurance

Car insurer to monitor driving

Bankrate Audio » Car Insurer To Monitor Driving

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Want to save money on car insurance? Well, State Farm has a deal for you! I'm Clark Palmer with your Bankrate.com Personal Finance Minute.

State Farm insurance is betting on the fact that in exchange for cheaper car insurance, you'll let them place a GPS system in your car that monitors your driving.

The In-Drive service is a small device that plugs into the diagnostic port of any car made after 1995 and a communication device that can be attached to the car's visor. Together, the add-ons allow drivers to access emergency roadside assistance, vehicle diagnostics, and maintenance reminders.

Service is free—after a $10 activation fee—for the first six months. After that, monthly fees are just $5 to $15, depending on the type of services desired.

However, if In-Drive subscribers opt-in to link the service to State Farm's Drive Safe & Save vehicle insurance program, they may save roughly 10 percent on liability, medical payments, collision, and comprehensive coverages.

So, this service begs the question of whether you're a good driver ... or you just think you're a good driver. It's not clear if your rates would go up if State Farm determines you're a riskier driver than they thought. But, it's worth a try.

For more information on this insurance program, log onto Bankrate.com. I'm Clark Palmer.

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