Products
According to a February 2011 Wall Street Journal article, Progressive has a leg up on its rivals in Pay As You Drive insurance, a form of vehicle insurance also generically known as usage-based insurance. Progressive has three U.S. patents covering usage-based insurance methods and systems, with more patents pending. Progressive began working on the concept in the mid 1990s and continues to refine the concept and bring it to the mass market.
Snapshot is Progressive’s Pay As You Drive, or usage-based insurance program. Snapshot is a voluntary discount program where drivers can save money on their car insurance by sharing their driving habits with Progressive. According to Progressive, Snapshot is best for people who drive less, in safer ways and during safer times of day. Snapshot customers can make changes to their driving habits that will lead to bigger discounts by checking their driving data and projected discount on progressive.com over the course of their initial policy period.
Drivers plug a device the size of a garage door opener into the on-board diagnostic (OBD) port of their car. The device records and sends the driving data to Progressive, and Progressive uses that information to calculate the rate. After 30 days, customers find out if they’re eligible for a discount – up to 30 percent – based on that 30-day “snapshot” of their driving habits. At the end of a six-month policy period, Progressive calculates the customer’s renewal discount and customers return the device to Progressive. Drivers’ rates can’t go up with Snapshot. And the discount is not based on location or speed. The device does not have GPS and the company doesn’t take into account how fast the car goes although it does take into account how fast and frequently the vehicle operator brakes. Snapshot is voluntary and customers can opt out at any time. Snapshot will also not increase the customers premium should they not be eligible for any level of the discount. The customer is charged up to $75.00 if they do not return the snapshot device to Progressive should they decide not to engage in the program after receiving it.
Snapshot is available in 42 states and the District of Columbia including: Alabama, Arizona, Arkansas, Colorado, Connecticut, District of Columbia, Florida, Georgia, Massachusetts, Idaho, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Mississippi, Montana, Minnesota, Missouri, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Texas, Utah, Vermont, Virginia, Washington, D.C., West Virginia, Wisconsin and Wyoming.
Read more about this topic: Progressive Corporation
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