In a recent press conference, Richard Hutchinson, Progressive’s General Manager of Usage-Based Insurance said that no particular fee or any other increase should be expected to come with the Snapshot program device. The device is issued upon the request of insured car drivers. Data transmitted from the plug-in device to the Progressive Company can be used for possible discounts under the program.
The device is plugged in a car’s on-board diagnostic port (OBD). It determines the time when a driver is using his or her car, how far they drive, as well as the speed they register. Car insurance advisors say that indeed, the time when an insured car is driven is a factor that is considered heavily by many car insurance providers because there are particular times within the day when it is riskier for drivers to be on the road. Car insurance advisors add that there are also periods in a day, such as during rush hours when cars become more prone to accidents.
Hutchinson said that though the device transmits the data from the car to the company, it will not be a permanent feature to the driver’s car which can qualify under the category of enhancements or modifications. He said that the time-tracking device is totally free. He said further that aside from the device being free upon the approval of a driver’s request, the device can be returned to the insurer immediately after use (typically after 6 months). Hutchinson said that should any driver find the device less helpful than expected, they can return it to Progressive without paying a penny.
Hutchinson said that car owners who request for the device should not incur any fees or charges in one’s auto insurance policy, nor on the driver’s “statement” for payment. Otherwise, he stated that Progressive will be obliged to face legal charges.
He also said that the device is a tool for determining a possible discount for drivers. It does not function to do the opposite task of cancelling possible discounts with its fees or charges. Finally, Hutchinson said that the Snapshot device does not have a global positioning system (GPS) so there is no reason for car drivers to fear that their cars can be tracked without their knowledge. Furthermore, the Snapshot device cannot be used for surveillance because it does not have that function.
