The current data collection systems used by Progressive and ALL state to monitor how certain drivers are driving are not able to collect data on where these drivers are driving, no matter what you might have heard. They are data collection devices only, not GPS systems.

The other important information about these data collection systems is the fact they can save you money on your automobile insurance. Insurers are beginning to wake up to the fact that not every driver is “low-risk” and all the forms in the world can’t help them determine who is safe behind the wheel and who is not. What they need is a device that tells them exactly ‘how’ someone drives: Do they speed? Do they brake a lot, or brake too hard? Do they take tight, hard turns at high rates of speed? And how much do they drive?

This information is crucial for determining how much of a driving risk someone is. Not only does it help insurance companies charge people who are more of a risk behind the wheel, it can also help insurance providers offer a discount to those who are defensive drivers; safer behind the wheel.

So far only the two companies offer this type of discounting device for their customers, and New York is only the latest in just a handful of states which allow insurance companies to do it. If you are a defensive driver, and you are willing to prove it, you might consider using a system like these data collection devices so you have evidence when you next negotiate your insurance rates.