Insurance is a tricky business because companies don't know you personally. They charge you premiums based on your age, gender, basic habits and past insurance use, and that's about it.
That means if you're a really good driver or are in great health, you might be paying more for insurance than you need to. The trick is how to convince your insurance provider.
When it comes to car insurance, a growing number of insurers have programs where they monitor your driving remotely. If they see you're a safe driver, then your premiums come down. Of course, the gadgets they use to track your driving are wide open to snoops and hackers. Click here for more about that danger.
Still, the basic idea is interesting, and apparently life insurance company John Hancock thinks so too. That's why it's come up with this pioneering scheme.
John Hancock, along with a partner company Vitality, is offering participating customers a Fitbit monitor. The Fitbit is one of the many watch-style health monitors that can record your heart rate, how much you move around and more.
As long as you're wearing it, John Hancock will off you up to a 15% discount on your life insurance, which can reach $91 a year. Plus, you can earn "points" for discounts at Hyatt, Royal Caribbean, Whole Foods and REI. Sounds like a good deal, but there is a catch.
Obviously, as long as you're exercising things are fine. However, if you stop exercising, the discount goes away. So you need to be sure you can maintain it before you sign up.
Plus, John Hancock and Vitality are getting quite a bit of personal information about you. While they say it's encrypted on servers that reside in the U.S., there have been enough data breaches in the last year to cast doubt on how secure the information really is.
So, what do you think? Would you wear a tracker to save on insurance? Do you see this as the future of insurance or a passing fad? Let me know in the comments.