Allstate Testing Smartphone App to Detect Driving Habits

Allstate is currently testing a smartphone app that can detect a person’s driving habits. This is a play on the Drivewise system, which is currently available as a separate device that can plug into a person’s car.

Allstate and Progressive both offer driving detection devices that monitor the way a person drives. Safe driving leads to more discounts on a person’s policy. The problem with these devices is that they cost a lot of money to make. But if the insurance providers can get their drivers to reduce the number of accidents, they could drastically cut their costs.

“Our model is a little more expensive because it’s a little more hardware-intensive, although we’re testing a cell phone application in a couple of states right now,” Allstate Chief Executive Tom Wilson told the Chicago Tribune. “We’re investing tens of millions of dollars in telematics.”

Progressive announced similar plans last fall, offering a contest to mobile app developers who could replicate their Snapshot technology.

Allstate did not specify which states were currently testing the app, but there is information on the Allstate website for downloading the app.

About Lynn Oldshue

Lynn Oldshue is a PR professional who has worked with the Birmingham Zoo, Coca – Cola , the Alabama Theatre, and the Saenger Theatre. She has covered personal finance issues for 10 years. Lynn can be contacted at [email protected]