Progressive’s 30% auto insurance discount explained


16Progressive General Manager Of Usage-Based Insurance Richard Hutchinson recently explained about the company’s transformative discount system. This is in response to the growing market curiosity about how the discounts entitle the drivers and how they are applied. In Hutchinson stated that the Snapshot program primarily considers a car owner’s driving safety.

Hutchinson first clarified that Progressive requires its insured car owners to plug in an authorized device under their 30 percent car insurance discount system. He added that the requirement to plug in the tiny device in a car’s on-board diagnostic (OBD) port must be done periodically. This will give Progressive, the monitoring company a more regular and consistent picture of how the insured car owners drive.

The device which Progressive termed as an innovation in the car insurance industry is widely utilized for specific purposes. One purpose is to determine the time a driver uses his or her car (when). Another purpose is to measure the ways by which the car owner’s driving affect auto feature and performance (how). Finally, the device also measures the quantity used in car energy and other enhancement variables when driving (how much).

Hutchinson further said that car owners can check Progressive’s website to see how their insurance policy rates are affected. The data transmitted by the device from their cars to the company can also be viewed online. For the full term of a six-month insurance policy period, he said that drivers can be able to observe their habits, which may be causing negative information on their “device report”.

While they have the device in their possession and during the period of six months, Hutchinson said that drivers can then make changes in their driving habits. This will help them maximize their savings when they apply for the 30 percent monthly discount.

With the Progressive’s website also running a report on how the drivers stand in the balance of data and discounts, the drivers can have a more transparent look into the ways, in which the Snapshot program reports data from their device to the company.

Most importantly, Hutchinson said that the Snapshot discount program does not include any lock-in period whatsoever. This means that the drivers can ask the company to take the device back. Furthermore, the device comes free when policy owner requests to become eligible for the 30% discount. Clients are not required to pay additional fees, and it should not increase a driver’s auto insurance premium.