Car ''black boxes'' helping drivers save on insurance - CBS46 News

Car ''black boxes'' helping drivers save on insurance

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Hope to save some money, Lyndi Cook allowed her car insurance company to track her driving habits.

"Our next renewal coming up, we saved 10 percent on one vehicle and five percent on another," she said.

More than a million people are letting insurance companies, such as Progressive, Allstate and State Farm, install "black boxes" in their cars. The port, plugged into your dash, tracks data such as mileage, when you drive, how fast, and how hard you 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.

In addition to the potential discount, experts say it's a great way to monitor your teenager's driving. And if you're worried about your privacy, insurance companies want to reassure you.

"It does not penalize you for your driving history. It only rewards you, those safe drivers that are driving safe. Right now the average savings for a safe driver is 10 percent," said Allstate agent, Ranjit Puthran.

Still, you should understand what information your insurance company is collecting and how it will be used before you sign up.

If you'd rather save money on your car insurance the old-fashioned way, talk to your agent. Many providers offer discounts for a safe driving record, low mileage cars, and bundling insurance plans.