Is it worth saving money to have an insurance company watch your every move?

Published: Wednesday, Dec. 12 2012 12:05 p.m. MST

MetroMile, an insurance company, sends users a device that plugs into a slot below the dashboard. This is how they track the number of miles the individual drives.

Portland Afoot via flickr

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Would being tracked everywhere you drive be worth saving money?

An insurance company in Oregon thinks so. Consumers are told they can save 25 to 30 percent a year in car insurance by paying per mile driven, according to The New York Times.

This program is available through a California-based company called MetroMile, but sells insurance in Oregon.

MetroMile focuses on those who don't drive much — less than 10,000 miles a year. A base fee of $30 to $60 dollars is paid in addition to the miles driven, according to Oregon Live.

Drivers end up paying about 4.5 cents per mile, according to MetroMile's website. This means that an average six-month total for someone who drives 4,146 miles per month would pay $466.13.

Joseph Rose, writer for Oregon Live, said MetroMile would only save him $2 a month if he switched to it. It looked like a good option for him until he added his 18-year-old daughter on the plan.

With his daughter added, it ended up being about the same price as his current insurance. The same went for his teenage driving son. He recommended the insurance may not be right with several young drivers at home.

The company sends users a device that plugs into a slot below the dashboard. This is how they track the number of miles the individual drives. For some the thought of being tracked may be a problem.

"The catch, of course, is having to be comfortable with an insurer as a silent copilot," said Jon Fingas in his article on Engadget.com. "MetroMile is careful to note that it's only watching mileage — it doesn't care if motorists swing by the racetrack or across the border."

Because of the gap between high-mileage- and low-mileage drivers, insurance prices have to subsidize for people who drive more, said Steve Pretre, CEO and co-founder of MetroMile.

“That is unfair,” Pretre said to Oregon Live, “and we are setting out to change it.”

EMAIL: alovell@deseretnews.com

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