TRENTON, New Jersey (AP) -- A high-tech monitoring device makes it possible to reduce insurance premiums for drivers who avoid jackrabbit starts and slam-on-the-brakes stops, an insurance company says.
One insurance company is installing high-tech monitoring devices in cars to help gentle drivers cut premiums.
The catch? Bad drivers who take a chance on the program may wind up paying a surcharge instead.
Auto insurer Progressive Corp. has begun offering its drivers the chance to cut their costs based on how they actually drive, not only on their age, credit score and number of tickets or accidents on their record.
The monitoring device -- sort of like a black box for cars -- tells Progressive what time people drive, how many miles they've driven, how fast they accelerate and how often they hit the brakes. It does not track where people go.
Under Progressive's program, customers can earn a first-term discount of up to 10 percent just for signing up. When they renew their policy, their rate could decrease by up to 60 percent based on their driving habits. But it could also increase by up to 9 percent.
Richard Hutchinson, a Progressive general manager, said the program is designed for drivers who are consistent and safe.
"We want people to know that the program is not right for everyone," Hutchinson said.
"It's for people who drive at low-risk times of day and who keep alert for others on the road," he said. "They don't make fast lane changes or follow too closely behind other drivers so they don't have to overreact or slam on the brakes."
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