The Atlantic City Press in the USA has presently reported that beginning August 8th a car insurance company Progressive Casualty Insurance Co will start the wheels turning on a new idea.

The company will offer a policy that allows the company to rate drivers based on how well and how far they actually drive.

In future, motorists must allow a high-tech monitoring device to be installed in their car. This monitor tracks mileage and speed.

 In addition it looks at how frequently the breaks are used and how quickly the car stops. Therefore, the company will then base car insurance rates on how risky a customer's driving behaviour is.

The company claims that some drivers will be able to save as much as 60% off their premiums.  However, this idea does have its critics. Some worry that it could penalise night shift workers, as they will be driving during riskier times of the day.

The American Civil Liberties Union believes that technology has once again invaded privacy as it will be one more piece of personal data on the corporate computer.

However, under the programme, the company has come up with customer rewards, to entice people, such as 10% discount for signing up and a long term gain of saving money in the future.

Although, it is also to be considered that insurance rates could not only go down, but for some, could possibly rise by 9%.