Credit Cards Tips for You

State Farm is calling their program Drive Safe and Save. They are teaming with OnStar in this program. As a participant in this program you agree to let OnStar report your mileage to State Farm, so they will have an accurate mileage of your annual driving. If you already are a State Farm customer, you will have noticed that on your annual statements, one of the ways you have been classified is by the number of miles you drive annually, generally below or above 7500 miles per year.

If you were classified as driving less than 7500 miles per year but have changed your driving habits and now fall over that limit, OnStar will report that too and you will actually see your premium increase. However, if your classification was accurate you should see a discount of 1 to 45%. The first year the discount appears to be 5% until enough data is available to accurately classify you.

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With State Farm it seems you are required to have OnStar to participate in this program, so if you aren’t a current OnStar subscriber, you will not see any savings, since the cost of OnStar will be higher than the insurance discount. The Automobile Club of California is supposed to start offering such a policy as well.

Potential change in your habits

Most of us react to incentives and the above study showed that the savings in insurance premiums did result in a reduction in driving, so this one does work. If you have heard any lectures on time management, you are likely to have heard that you should combine errands. Well, here is yet another incentive to get you motivated to do what you know you should do.

Most of us would rather have fun, spend time with our families and enjoy recreational activities than run errands, so why do so many of us still run to the grocery store in the morning, only to drive to the post office in the afternoon? Even though large chunks of time off do motivate people, little quantities of time saved aren’t usually equated with a high priority, but even the smallest amount of money saved seems to make a difference.

Potentially less traffic on the roads

This is California we are talking about. Traffic has been horrendous for decades. Taking almost 10% of the vehicles off the roads will make a big difference. Just imagine 10% fewer accidents, fewer waits on backed up highways, fewer detours because of outright closures due to accidents. You may even see the difference in the air quality. This category of benefits will affect you whether you actually participate in this way of insuring your vehicle or not.

Not many programs benefit society as a whole like this one does, so even if you personally will not get a discount on your insurance premium, this is a worthwhile experiment. If the study was correct, everyone in California will see the difference.

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