GPS-based System Insurance


Progressive Insurance took a huge step in the auto insurance industry in attempt to not only help customers save money, but keep an eye on the actions of an insured driver’s vehicle. This system began in 1998 as a pilot process in Texas, in which drivers that installed or had a GPS-based device in their vehicle that could track their driving behavior with the results being communicated to the company through a cell phone.

However, the system caused problems as the policyholders were upset about having to pay such a steep price to invest into a GPS-device to acquire the savings as well as the privacy concerns that came along with it. Customers did not like the idea that their insurance company was knowledgeable of their driving behavior without consulting with the customer themselves. The program was ultimately a failure, and was discounted in 2000. Take a look at Arlington Auto Insurance Guide and find out more information about auto insurance.

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Creative Commons License photo credit: Rockets.
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Creative Commons License photo credit: Rockets.

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