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- iHaveNet.com: Autos
Business travelers who park their cars at the airport several days a week, families with an extra car they only drive occasionally, and drivers who avoid slamming on the brakes have one thing in common: They’re all less likely to be in an accident. And that means they can all save money on car insurance with a new type of insurance discount offered in some states by Progressive.
The new program is called the Snapshot Discount, and that’s an apt name since the program revolves around the insurance company’s ability to get a snapshot of your driving habits. After drivers sign up for the Snapshot Discount, Progressive sends them a device the size of a garage door opener that plugs into the on-board diagnostic (OBD) port of their car.
The device records and sends the car’s driving data to the company. After 30 days, customers will find out if they’re eligible for a discount (up to 30 percent) based on their driving habits, and they’ll see that discount applied to their policy.
Progressive didn’t spell out exactly what they are looking for, but people who drive less, drive carefully and drive during safer times of day are more likely to get a discount. At the end of the six-month policy term, Progressive determines the renewal discount, and the customer returns the device. The insurance company reserves the right to periodically check in with customers to get an updated picture of their driving by asking them to plug in the device again.
Snapshot is voluntary, and customers can opt out any time. The company promises it won’t make customers’ rates go up. The Snapshot device measures how, how much and when customers drive their vehicle, but it doesn’t have GPS, so it doesn’t track a vehicle’s location (good news for unfaithful spouses).
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