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Technology can lower your car insurance premiums

But now technology may help you get a break on insurance premiums. Progressive’s user-based insurance, called Snapshot, is now offered in 37 states (to see if yours is one of them, go to www.progressive.com/auto/snapshot-availability.aspx).

Here’s how it works: You plug a palm-size tool into the diagnostic port in your car (all cars made after 1996 have one), and it pulls data from the car’s computer and sends it to Progressive via a cellular network. The tool tracks the time of day you drive, your mileage, and your acceleration and braking rates. After 30 days, you may earn an initial discount; after six months, you send the tool back and become eligible for a permanent discount of up to 30 percent. There’s no cost to enroll, and Progressive cannot raise your rates based on the data collected.

Allstate has a similar program, called Drive Wise, currently available in Arizona, Illinois and Ohio. The tool collects the same data as Progressive’s, plus the number of times you exceed 80 miles per hour. You get a 10-percent discount at sign-up, which is replaced by a discount of up to 30 percent after your first policy period.

It costs $10 per period to participate, and you need to keep the tool in the car to keep earning discounts -- each is applied to your policy renewal. Neither Progressive nor Allstate includes GPS in its tool, so your whereabouts are your business.

General Motors’ OnStar system is the basis for two programs that offer discounts to low-mileage drivers. OnStar is free for the first year for new GM vehicles; subscriptions cost $19 to $29 per month after that, depending on service options.

GMAC Insurance offers customers in 35 states an 8-percent average discount just for having an active OnStar subscription.

Allstate Blog: Is Insurance Really Necessary?

When you are young and single, the last thing you probably think about is insurance. From car and health insurance to home or renter’s insurance, monthly premiums can add up quickly and seem unnecessary if you perceive that you are not benefiting from owning insurance.

Recently, I overheard a conversation between two graduating college seniors. They were talking about whether or not they needed insurance at all because all the extra coverage seemed unnecessary. But when it comes down to it, t**** are certain types of insurance coverage that are absolutely necessary, even if you are on a tight budget.

Even if you don’t make any claims under the coverage, the extra security insurance can provide, just in case of an emergency, is well worth the money you pay.

**** are three types of insurance that recent college graduates definitely should not live without:

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