Pay-As-You-Go Insurance: Privacy Protection and Concerns

Drivers Beware: Pay-As-You-Go Insurance Discount Comes in Many Forms

Pay-As-You-Go insurance programs have numerous benefits including substantial insurance discounts. However, there's some concern about how much information insurers should require before awarding a Pay-As-You-Go insurance discount.

Some Pay-As-You-Go insurance programs gather more than mileage. For instance, Progressive's Pay-As-You-Go insurance discount program captures driving behaviors such as braking patterns, speed, and the time of day you drive. All information may be recorded, and some consumer privacy advocates worry the company will use that information to calculate auto insurance premiums and claims payouts. There's even the potential for this information to be used in unrelated lawsuits. But their biggest concern? With these Pay-As-You-Go insurance programs, advocates are worried that in the end, your premiums may actually go up.

GMAC Insurance Pay-As-You-Go Insurance Discount: Easy. Private. Effective.

With the GMAC Insurance Pay-As-You-Go insurance program, consumer privacy is respected and completely secure. The opt-in GMAC Insurance Low-Mileage Discount uses only odometer readings, which are automatically sent through monthly OnStar Vehicle Diagnostic reports. Insurance discounts are awarded based solely on the miles driven. No other factors are considered, shared or used in any way.

And with GMAC Insurance's Pay-As-You-Go insurance discount program, drivers are not penalized if they drive over 15,000 miles. While they are no longer eligible for the Low-Mileage Discount program, these customers still receive an insurance discount simply for having an active OnStar subscription.

Not all Pay-As-You-Go insurance discount programs are the same. It's important for drivers to enroll in one that's comfortable for them.