[tyketime]

Time for our annual car insurance renewal, and my wife would like for us to consider switching to a pay-per-mile insurance policy instead of a regular policy. On one hand, it makes sense as we both average around 5000-6000 miles per year. The Agent estimated the "break-even" point would be somewhere around 8500 miles/car. But in order for them to track our mileage, we have to install an actual device in the car and/or phone app. This is when the red flags start to appear for me. I am very well aware that we are tracked as much as technologically possible. From computer, to phone, to credit cards, and everything else. Do I now need to add another tracking device?

One quote we received is for Allstate Milewise. We would have to install a small device into the car (plugged into OBD port) and download their app. The rate is calculated as a combination of:
- Fixed Daily Rate
- A Per-Mile Rate (capped at a certain maximum per day so the occasional road trip doesn't bust the budget)

But they also track the following which would reduce the discount (thus increasing your daily rate):
- Limit sudden braking
- Keep speeds below 80mph
- Limit late-night trips between 11PM and 4AM

As part of their brochure, they also show a route map that shows where you were driving and when "negative" incidents occur. So there is also true GPS functionality built into it. While I'm not that worried I would get dinged for any of the driving behavior issues (certainly not the 2nd/3rd points), it just feels to me like another Big Brother is Watching scenario.

So I ask whether any of you have experience using this type of insurance program? Am I just being too paranoid to sell more of my privacy to save money? If the Agents' estimate holds true, we would probably save ~20% annually ($400ish). Would that be worth it for you to make the switch?