How the smartphone will reduce your auto insurance rates…. One day…

Steve White Louisville

In the not so distant future, Auto insurance companies will offer automatic daily adjusting insurance rates based on your driving habits. For instance if you lived in the City and only drive during the weekends it would be nice to only cover your auto when you use it and cover it how you use it. What if the insurance company could verify this and adjust your rates as you may only drive 50 times a year? That is a compelling solution for infrequent drivers that today have to pay for full time coverage. I guess the inverse is also true, If I drive 300 miles every day, I would expect my rates to be elevated when compared to someone who drives 10 miles per day.


As the car “Music Interface” (what is called the “car radio” today) will become the link between the smart phone and the automobile diagnostic link. Install an application on your smart phone, and you’ll be able to download the performance, MPG, driving habits and system health of your auto. It would also become the link to perform a vast array of traffic, road conditions, real time fuel economy measurements and reporting well beyond insurance adjustments alone.