If you live in or around Yakima, Washington, Las Vegas, Nevada or El Paso, Texas, there’s some good news for you. These are regions in which incidents of auto theft have historically been high – but as car theft decreases around the country, people are seeing decreases in their general auto insurance costs as well.

The NICB Report

According to the most recent figures from the National Insurance Crime Bureau (NICB), incidents of auto theft in the U.S. have gone down by approximately 18% over the past two years. This translates into real savings for consumers, making it easier to find the best car insurance rates on comprehensive coverage in major metropolitan areas.

How It’s Happening

The reduction in auto theft across the nation has been due to a number of factors. Technology such as tracking devices and the greater availability of anti-theft devices have had an impact on the issue as drivers take greater precautions in protecting their transportation investment. The combined efforts of law enforcement and insurance investigators have also played a part.

Don’t Get Complacent

Granted, most people who carry comprehensive insurance that covers loss due to theft are those who drive newer vehicles, but even those folks (and perhaps these people especially) are looking for ways to trim expenses and get the lowest auto insurance rates possible. It may be tempting to drop your theft coverage – but unless yours is an older vehicle worth less than a few thousand dollars, this is not a good idea (and if you still owe on the vehicle, your lender may not allow you to do this in any event).

Instead, you should (in addition to keeping the car locked whenever you park it) invest in anti-theft security devices. Car alarms are a highly effective deterrent, particularly those that not only emit an audible alarm, but also activate the lights.

Another important safeguard is a tracking device, which can be hidden almost anywhere on the vehicle. Using a combination of wireless and GPS technology, such a device can be programmed to alert you should someone attempt to make off with your vehicle. Furthermore, it can be of invaluable assistance to law enforcement in recovering your vehicle – and your insurer will reward you with cheaper car insurance rates.

Telit Wireless Solutions, Inc., the U.S.-based mobile technology arm of Telit Communications (AIM: TCM), announced today that its CC864-DUAL, a CDMA-1XRTT dual-band cellular machine-to-machine (M2M) communications module, was selected by Walsh Wireless Solutions, LLC, a leading provider of wireless technology solutions for corporate customers, to enable the Walsh DataLogger(TM) vehicle monitoring device for usage-based car insurance and fleet management applications.

Telit and Walsh Wireless will demo the innovative DataLogger(TM) device and offer exclusive market insight on industry panels at the Insurance Telematics Conference and Exposition in Chicago on Sept. 13-18.

The Walsh DataLogger(TM) is a self-installable plug-and-play vehicle Telematics device that relies on Telit’s CC864-DUAL cellular module for a secure wireless connection to remotely monitor vehicle performance, location and driver behavior. By tracking data such as acceleration, braking habits and mileage, the DataLogger(TM) enables car insurance providers to develop customized insurance premiums based on actual driving habits.

“Our insurance customers trust that the Walsh DataLogger(TM) will provide a cost-effective and reliable solution that seamlessly monitors driver behavior, enabling them to provide a truly individualized insurance policy. By integrating Telit’s CC864-DUAL module, we are able to deliver the security, reliability and accuracy that the growing insurance Telematics market demands,” said Chick Walsh, Chief Strategy Officer of Walsh Wireless.

Telit’s CC864-DUAL is ideal for rugged automotive applications, featuring an ultra-compact design and extended operating temperature range. The module also incorporates gpsOne(R) capability for personal and asset tracking applications in mobile environments. Featuring the same form factor, function and AT command interface as its GSM/GPRS and UMTS/HSDPA counterparts, integrators can seamlessly swap Telit modules without costly redesigns and take advantage of the global coverage.

“The Walsh DataLogger(TM) provides auto insurance companies with a smart, practical and user-friendly device for implementing a usage based insurance program for their customers. This type of device will help both consumers and insurance companies realize many of the economic, safety and environmental benefits that UBI programs promise to deliver,” said Michael Ueland, Vice President and General Manager of Telit Wireless Solutions, Inc.

In a move that could get people finding alternative ways to commute, state legislation (.pdf) approved last year enabled auto insurance companies in California to offer discounted rates for drivers who don’t use their vehicles that much. Now, State Farm is the first company trying to take advantage it.

“It’s just common sense that Californians who choose to drive less should have an option to pay less for auto insurance,” said Insurance Commissioner Steve Poizner, who is also running for Governor. “The voluntary pay-as-you-drive initiative is a cutting-edge program that will allow insurers to offer these plans without compromising consumer privacy. I hope other insurers follow suit and join State Farm in offering this product.”

If State Farm’s plan is approved, insurance rates would depend on the actual mileage instead of estimated mileage, according to Poizner. Customers would starting seeing rates reduced when driving 500 miles less per year. Methods to verify mileage include having insurance agents, mechanics or smog check facilities record the data. A “technological device” can also be used to track mileage.

But what happens if you happen to drive more than you usually do (say, a random road trip)? Will you end up paying more than ever? That’s yet to be seen, but the option of traditional auto insurance as we know it is not going away.

On average, the way we pay auto insurance isn’t exactly fair. We could be the best drivers on the road who drive the minimal amount every day, yet end up paying just as much as the speed demons around us simply because we happen to be the same age or gender. The use of M2M (machine-to-machine) technology, in the form of usage-based insurance, can do wonders for getting auto insurance rates on an even road.

Usage-based insurance allows drivers to plug a device into their vehicle’s OBD (on-board diagnostics) II port which collects data about specific driving habits including how often they drive, how far they go, as well as location and speed information using GPS technology. Dennis Lottero, vice president of business development, Walsh Wireless, www.walshwireless.com, San Ramon, Calif., joined The Peggy Smedley Show this week to talk about this market and the potential for the technology going forward.

Walsh’s specific solution can also determine how safe a vehicle is being driven by monitoring variations in movement, such as the speed a driver makes a lane change, with the device’s three-axis accelerometer. The data collected by the device is then transmitted back to the driver’s insurance company via the mobile broadband network from Sprint, www.sprint.com, Overland Park, Kan. Once the insurance company receives this information, it can then analyze it to determine how much each driver should be paying for their auto insurance based on their personal driving habits.

Aside from providing Walsh with the network connectivity for its solution, and as a longtime business partner, Sprint helped Walsh to “develop a strategy to bring the solution from concept to market,” says Bill Faresich, strategic opportunities manager, Sprint’s Emerging Solutions Group, who also joined the show.

Lottero says Walsh considers a partnership like that with Sprint to be important, as evidenced by having worked with the carrier for almost ten years. He went as far as to label Walsh as an “exclusive business partner” to Sprint, expressing no interest in any other network operators. While other vendors may work with more than one carrier at a time, Lottero says he hasn’t found any limitations working exclusively with Sprint.

To hear the entire broadcast and to access archives of previous shows, visit www.peggysmedleyshow.com. The Peggy Smedley Show broadcasts live every Tuesday at 10:00 a.m. PST/12:00 p.m. CST/1:00 p.m. EST on wsRadio.com or check out The Peggy Smedley Show on iTunes.

By Kyle Hansen

A small, blue plastic box may be the future of car insurance.

The box, which plugs into the on-board diagnostic port of the car, wirelessly sends data to the driver’s insurance company.

If motorists don’t mind sharing information with their insurer, it may save them some money.

“This is really where we think auto insurance is headed,” said AAA Nevada spokesman Michael Geeser. “We want to use the most accurate information we can, and this is one way of gathering that.”

Nevada is the first state to get the service, called uDrive, for AAA. But if it is a success here, it will spread, Geeser said. The auto club is holding open houses this weekend to show off the new devices.

Progressive Insurance has offered a similar program, called My Ride, in Nevada since September, spokeswoman Susan Rouser said. Progressive offers My Ride in 19 states and is working on expanding the program. Some 100,000 Progressive customers already use My Ride.

The boxes plug into most cars made after 1996.

AAA’s new program tracks the number of miles the vehicle runs and the speed it travels.

The company is offering customers a 10 percent discount on their auto insurance for using the device, Geeser said. If the customer drives fewer than 10,000 miles in a year, they get an additional 5 percent discount.

“You can’t loose; even if you don’t drive less than 10,000 miles you still get a discount,” Geeser said.

The average motorist drives 12,000 miles a year.

Progressive’s program also tracks the time of day the car is used and how often the driver uses his or her brakes, Rouser said. It then offers customers an insurance rate based on a comparison of the driver’s data compared with other drivers in the state.

“We’re always looking for ways for customers to save, and this is something that helps them determine their rates,” Rouser said.

Both programs allow customers to log onto a Web site to view their driving data, which allows them to adjust their driving habits.

Geeser said the program gives AAA data that will help it better understand drivers’ needs and habits. Plus, drivers can use the data to find ways to lower their own costs by changing how they drive.

The devices do not have GPS technology and cannot tell the insurers where the cars are located.

But the program attracts safer drivers, which helps the insurer, Geeser said.

“The data helps make better drivers, and makes the whole valley better,” he said. “We want safe drivers, not only our members, but also the driver next to them on the road.”

By Ed Leefeldt

Conspiracy theorists will hate it, but insurers taking a big bath on fraud claims see it as salvation. It’s called “telematics,” and essentially it is a Global Positioning System or GPS on board your car.
What’s wrong with this? Many cars have these navigation devices to help drivers find their way through traffic jams and unfamiliar territory. The most famous example of telematics is General Motors‘ “OnStar” system, which summons help for drivers in the event of an accident. But the new telematics is meant to help not the driver but auto insurers.

Progressive is the most progressive in pushing this new technology. It has approval in three states as “MyRate” insurance, so it can base premiums on driver behavior. Progressive’s on-board wireless device measures how far a vehicle travels, where it goes, how fast and at what time of day. The insurer is looking for drivers who exhibit less risky behavior, such as not driving on the Los Angeles freeways during rush hour.

In return for what amounts to having a back seat driver, policyholders receive reduced premiums. And according to Progressive, there’s also a technology cost of $30.

Will other insurers want in? Probably. There’s also another huge incentive. Auto insurers are increasingly becoming the victims of fraud. Recent California cases include drivers who bought cars they knew were damaged, and then insured them and tried to file a claim, as well as drivers who staged accidents, or simply pretended that accidents happened when they didn’t.

The electronic on-board cop could catch a lot of this, or at least make auto fraudsters think twice. That would be a blessing for New York State where, according to the Daily News, fraud cases have risen 33 percent since 2006, with scams focusing on the boroughs of Brooklyn and the Bronx.

The problem: car owners have to agree to install these telematics. So why would potential criminals do this? We force criminals to wear ankle bracelets, don’t we?

Ed Leefeldt is an award-winning investigative and business journalist who has worked for Reuters, Bloomberg and Dow Jones, and been contributed to the Wall Street Journal and the New York Times. He is also the author of The Woman Who Rode the Wind, a novel about early flight.

Driving habits could save around 25%, or be charged up to 9% on car insurance

Progressive, an auto insurance group, has introduced an optional car insurance program, MyRate, that provides lower rates on vehicles insurance that are driven in less risky ways.

According to Progressive, MyRate is a behavior-based insurance program that uses patented technology to put consumers in control of their auto insurance rates. Drivers who sign up for MyRate, will receive a device to plugs into a port in their car and measures how much and when the car is being driven. Cars driven less often, in less risky ways, and at less risky times of day, can receive a lower premium.

Drivers who purchase the policy could save around 25%, or be charged up to 9% or more, based on their driving habits. Drivers will be able to see whether they are on track for a discount or an increase, by reviewing their driving data on company’s website.

The new program, pending state regulatory approval, will be rolled out countrywide.

NAMIC dailyLead | 01/12/2009

Experts and insurers believe electronic stability control is the best thing in automobile safety since seat belts. Full implementation of stability control in 100% of vehicles by 2012 could save thousands of lives, the federal government says. “Our recommendation to consumers is that you want to buy a vehicle with electronic stability control,” said David Zuby, a vice president of the Insurance Institute. San Jose Mercury News (Calif.) (01/12)