2 Wireless Companies Offer Solution for Lower Auto Insurance Rates

By: Shannon Brown, Car Insurance Analyst
CheaperCarInsurance.com

Auto insurance companies are progressively modifying the approach they use to determine insurance rates. Rather than relying solely on the average driver’s record to base premiums on, insurance companies are adapting to a User-Based Insurance system. UBI is the method of determining rates by the usage of the specific vehicle and the driving behavior of the insured. Sprint and Walsh Wireless have devised a solution that meets UBI standards. It is simple for insurance companies and can reduce auto insurance premiums for drivers.

The Walsh Wireless Data Logger

Sprint and Walsh Wireless have announced the launch of this new certified device to help bring down the cost of auto insurance rates for drivers nationwide. This device, powered by Sprint 3G Mobile Broadband, would allow wireless monitoring of:

• A vehicle’s performance
• Location
• Driver’s driving pattern

The self-installed device is easy to use and could reduce auto insurance rates for safe drivers. Insurance companies could offer better rates with the help of this device as it offers improvement in the risk assessment process. It could possibly reduce the number of insurance claims being filed as well. Motorists with safe driving habits and who drive less frequently could see a reduction in their premiums through implementation of this device.

The Walsh Wireless DL is simple to use, easy to install and cost effective. It installs in most models such as GM, Ford, Honda, Chrysler, Toyota, Nissan, BMW, Audi and Volvo. The vehicle must be a 1996 or newer as the device uses a diagnostic connection port to operate. It does not require batteries or maintenance of any kind. It simply plugs into the connection port and it’s ready to go.

The Data Logger additionally provides GPS and a 3-axis Accelerometer. The 3-Axis Accelerometer monitors the vehicle’s operating features without installing additional sensors and monitoring devices.

Advantages of In-Car Monitoring Systems

This device and others like it will help insurance companies offer lower auto insurance rates for safe drivers as well as bring innovation and competitiveness to the industry. Government units and businesses can benefit with the Walsh Wireless DL as well by improving the management of large fleet vehicles.

Auto insurance companies are already using in-car monitoring systems to determine rates based on mileage and driving activity. Companies such as Progressive offer programs that allow you to ‘pay as you drive’ for car insurance. A device is sent to the policyholder to plug into their vehicle. The device monitors what time they are driving, how they drive, and the mileage used. The device can sense when a driver accelerates and usage patterns and sends readings to the insurance company to adjust rates accordingly.

Safe drivers that do not drive during peak traffic times and drive short distances could save up to 25% on their auto insurance rates by participating in the programs. These devices encourage motorists to drive safely and become more aware of their driving habits to save money on their premiums. It also reduces the number of accidents as drivers are taking more precaution behind the wheel.

Currently these monitoring devices are only available through a few auto insurance companies such as Progressive and Liberty Mutual in particular states. However, as more insurance companies become aware of these devices for UBI, it will become readily available to most drivers.

Providing the latest vehicle monitoring system using a trusted 3G wireless network, the Walsh Wireless Data Logger will offer better auto insurance rates for drivers nationwide. The Data Logger device will revolutionize the auto insurance industry and bring a smile to insured drivers who are saving more money on their auto insurance rates.

Posted: March 10, 2010