Sunday, February 09, 2014

Car Insurance Milage Based Discounts

Yay! StateFarm finally has mileage based insurance rates discounts! Based on the information on this webpage, the less I drive the greater my discount.  The piece of resistance would be if my car travels only 500 miles a year I could save up to 45% of my premium.

$106 dollars a year. Cool! Unfortunately, my cold harsh reality is I can expect to maybe qualify for a $77 annual discount.

StateFarm receives mileage data from the OnStar service. Assuming my car is OnStar equipped (it is) and I already subscribe (I don't) I'm good to go. Sign me up, right? The least expensive rate for OnStar requires a 3 year commitment costing $166 annually. Woops! I can save $77 a year on insurance by spending $166 a year for OnStar?

Let's say I already shell out $166 a year for OnStar, enjoying all their services and diagnostics and what nots. That would seem to make sense right? I already have OnStar, I already enjoy it. Now I'm getting $77 bucks back for my auto insurance because of it.

Win win win, right?

Not so fast. As I decrease my driving I'm far less likely to need automatic crash response, emergency services, hands-free calling, roadside assistance, remote services and vehicle diagnostics. So the value I get from my OnStar service decreases as I get more I get from my discount.

I have a solution!

StateFarm should get my mileage from the NSA. They likely have that information through my cell phone anyway. I think it's about time the NSA gives me something back!


SD_pedalpower said...

They will get your money somehow, unless you get rid of your cars...?

mytzpyk said...

You are, or course, correct, SDP.