The snapshot program PAYD by Progressive offers policyholders a chance to reduce auto insurance rates by about 30%.
The future of auto insurance is finally upon the customers. Progressive has announced its Snapshot Discount which is a PAYD program where drivers will have a chance to lower their auto insurance rates by paying insurance premiums based on their driving habits. A device would be installed in their vehicles which would provide a real-time analysis and report the driving data to the insurer. This technology has been available for a while now but Progressive claims to be the first to bring it to its customers.
This Snapshot device can be plugged in to the onboard diagnostic port which is at the steering wheel on almost all vehicles that have been manufactured after 1996. This device will compile all the data that is required along with the driving habits etc., and send it across to Progressive.
The insurers have managed to get patents on the systems that have been used in Snapshot and thereby creating a program that is one-of-its-kind and advanced in terms of security, technology, as well as the ability to get maximum discounts for its customers.
This Snapshot Discount will not be based on the speed or location of the vehicle. This device does not have the GPS technology, hence Progressive will never know the location of the vehicle, nor does it take into account the speed at which the car is driven.
After the vehicle is driven for about 30 days with the device on, the customer can view the policy and establish the amount of discount that they have earned initially and then see what other changes can be brought about in their driving habits in order to avail more discounts.
After the end of six months, the customer will return the device to Progressive. The insurer will then calculate the final discount that the driver would have availed. The initial discount is applicable to the initial six-month policy term whereas the final discount will be applicable to the policy terms for the future. The insurer claims that drivers can easily avail a 30% discount on their policies.
This Snapshot PAYD program is presently available in 32 states. More states would be added in the coming months states Progressive.
CEO and President of Progressive, Glenn Renwick thinks that this is a cool technology which is also fun to use. It’s also a whole new experience in auto insurance.
