If making auto insurance profitable is all about finding drivers who are less likely to have an accident, the simple and obvious group to insure are those who drive the least. Put the other way round, drivers who commute long distances when traffic conditions are heavy are more likely to be involved in accidents. The problem until recently was how insurers could verify the actual number of miles driven. Sadly, the evidence has shown people cannot be trusted to tell the truth and the majority will exaggerate to claim the discount. Even when insurers have experimented by asking people to drive round to the offices of their insurers, they have been known to wind back the odometer. Without trust, most insurers refused discounts for low mileage claimants unless they were retired or disabled.
Now technology has solved the problem. Many vehicles are now fitted with enough computer hardware to capture details of when and how well the vehicle is being driven. Others can easily have a black box fitted. Now the auto insurance companies can monitor the mileage and, if the right technology is in place, also check out the driving style, e.g. heavy acceleration, rapid wear of brake pads, and so on. The result is very low rates for those who only drive a few miles a day at off-peak times.
This is ideal for homemakers and the retired. It may also be attractive to the unemployed or any other group who have less need to go places at peak hours. The only question is whether people are prepared to sacrifice some of their privacy in return for reduced auto insurance rates. Although most insurers now offering this type of policy give an undertaking not to record where you travel — which might save you from embarrassment if you visit a lover or rob a bank — there's nevertheless a lot of information collected about you.
In more general terms, the long-term benefit to society is all drivers with the technology reporting on their driving may actually drive more safely. Just think, if we all drive without rapid acceleration and violent braking, we will use less gas, save money and reduce the risk of the world running out of oil. As it stands, there are millions of people injured and killed on our roads every year. Anything that improves on this situation is to be encouraged. So check out what your local insurers are offering. You may find the discounts are attractive even if you drive an average number of miles.