Angie's List: Pay as you drive car insurance

Right now, more than a million drivers across the county are taking part in "usage based" insurance coverage.

The new insurance program is based on technology and could save drivers lots of cash, Angie's List founder Angie Hicks said.

"Technology has come to almost every part of our life and auto insurance is no difference," said Hicks. 

Lyndi Cook, of Peru, enrolled in a technology-based insurance program.

"Our next renewal is coming up and we saved ten percent on one vehicle and five percent on another," Cook said.

Experts said the majority of drivers who enrolled in the program by releasing information about their driving habits including mileage, when and how fast they drive, and how hard they apply the brakes.

"I didn't get a very good grade in braking so I'm trying to be more aware of that now," Cook said.

Some companies monitor driving habits through programs like OnStar. Others track data through a device that plugs into a port under the car's dashboard.

Allstate Insurance Agent Ranjit Puthran said that the option could be great for teens and parents.

"You have a young driver, a teen driver, and you want them to see how they are driving, what their driving history is, what their habits are. That's a great way for a teen to look at their driving habits and correct those," Puthran said.

Angie's List advises customers to understand the fine print in these types of policies.

Many insurance providers also offer discounts for safe driving records, low mileage and bundling insurance plans. 
 

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