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 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 I’m Clark Palmer.