CarShield Pay-As-You-Drive Insurance Discount Program Creates Consumer Privacy-Friendly Alternative that Puts Drivers in Control

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In-vehicle Driver Safety, Security and Convenience Service lets consumers predetermine whether their driving habits will result in reduced auto insurance premiums, eliminating the risk of higher premiums

CarShield Announces Pay-As-You-Drive Insurance Discount Program

CarShield is reframing this discussion to eliminate privacy concerns by putting control of the consumer’s driving data directly in consumers’ hands, not the insurers’.

CarShield Services, Inc., developer of CarShield® aftermarket vehicle Driver Safety, Security and Convenience Services, announced today a new program to help consumers better protect their privacy rights and actually reduce their premium rates when participating in pay-as-you-drive auto insurance discount programs.

Pay-as-you-drive (PAYD) discount programs are designed to help consumers who drive fewer annual miles than the national average save money on their auto policies. Most insurers who make PAYD programs available require that a vehicle data-reporting device be installed in their insured’s vehicle. This data is used to re-rate the insured’s auto policy premium based on recorded driving data. Consumer advocacy groups say this sort of data sharing violates consumer privacy rights.

CarShield is reframing this discussion to eliminate privacy concerns by putting control of the consumer’s driving data directly in consumers’ hands, not the insurers’. CarShield also lets subscribing consumers determine beforehand whether their driving habits and history would result in a premium discount.

“Unlike other insurance discount programs from many major insurers, with the CarShield program consumers would know in advance whether there is a chance of an insurance discount and how they can increase that chance by making simple adjustments to their driving habits,” said Scott Nesbit, VP of Business Development at CarShield.

“When consumers sign up, CarShield monitors their driving habits over the first 30 days. During this period they receive via email weekly personalized tips, based on their specific driving data – mileage and the like -- about what driving adjustments they might need to make, if any, to potentially qualify for the discounts offered from participating insurance companies and the extent of the potential discount,” Nesbit added. “Our program continually feeds the subscriber this data so he or she can remain a safe driver and within the PAYD parameters.”

Traditional PAYD insurers do not offer consumers such a trial to learn if their driving habits might indeed result in a premium discount. Theoretically, the reported data could result in a higher cost premium. In addition, many PAYD program insurers require their policyholders to let the company install the reporting device, further removing control from consumers’ hands.

“CarShield does not share any information with anyone except our customer, until the chance of a discount is determined and highly likely,” Nesbit said, “and then only the data the consumer feels comfortable sharing. We believe that sharing information with an insurer prior to knowing the potential damage that can be caused by disclosing such information is a disadvantage to the consumer, although most of our customers are already safety conscious drivers,” he added.

Highlights of the CarShield PAYD discount insurance program feature are:

  •     Weekly feeds of driver habits to the driver, based on computer-based analysis that compares the consumer’s driving data to national averages and other regional factors. These data feeds are for the subscribing consumer’s eyes only, designed to help them improve driving habits and to determine the possibility of savings from a PAYD insurer, in advance of disclosing this information to any insurance provider.
  •     Consumers who after reviewing their 30-day road-test data choose to have CarShield provide this data to their selected insurer to participate in a PAYD program can in some cases save hundreds of dollars a year in premium cost.
  •     Once the consumer is participating in a PAYD program with his or her select insurer, CarShield, on a monthly basis, pushes ongoing driving data to the consumer and the insurer. This benefit lets the consumer know exactly what data the insurer also sees. Consumers can also apply this data to the driving habits to help them identify additional savings in fuel and their vehicle’s effect on the environment.

Nesbit said CarShield, while developing this feature of its in-vehicle safety and security service, has wrestled with the privacy issues associated with insurance companies collecting information and the inherent conflict that exists in PAYD vehicle insurance.

“The challenge is how to build a win-win program between two parties where one party’s goal – the insurance company’s -- is to maximize profits and the others is to minimize spending,” Nesbit said. “As a third party, CarShield has developed this program to eliminate these conflicts and deliver on our mission of saving lives, money and time for our subscribers.”

Beta tests of the CarShield PAYD feature shows that participating consumers’ driving habits shifted toward safer habits. The weekly tips and implementation of their personal driving information help them also to achieve related savings. Furthermore, consumers subscribing to CarShield should already be receiving certain auto insurance discounts, as CarShield is also an aggressive, GPS-based theft deterrent device.

As an aftermarket telematics device, CarShield works on any 1996 and later make or model. CarShield features integrated engine diagnostics and alerts as standard. It sends, receives and stores information effecting vehicle operations, including automatic crash detection, 24/7 emergency services and more. CarShield has models for do-it-yourself quick plug-in or for professional installation.

Headquartered in Sunnyvale CA, CarShield provides Driver Safety Security and Convenience Services that include:

  •     Robust driver safety features, including nationwide automatic crash detection, 24/7 emergency assistance, plus exclusive alerts for key safety functions such as brakes, engine acceleration, excessive speed, and engine temperature, as well as door unlock and low and dead battery alerts .
  •     Advanced vehicle security protection, including GPS-based locate and track stolen vehicle features, door unlock (no need to wait hours for a third-party locksmith as dispatched by OnStar FMV), alarm notification, starter interrupt, unauthorized movement and more.
  •     Greater consumer convenience, with 24/7 live customer help line, web interface access and iPhone/Android apps, remote start, trip logs and reports, and system transferability.
  •     Remote Diagnostics, exclusive to CarShield, in professional-grade DealerSyncSM engine diagnostics (engine diagnostics not available on OnStar FMV) to help consumers and their dealers keep their vehicles in top performance for maximum MPG.

To learn more about CarShield, go to http://www.mycarshield.com or call 888-244-1611.

For more information about pay-as-you-drive insurance:

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Jim Leman
CarShield
(847) 840-0784
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