Progressive’s Pay-as-you-drive program reduces insurance premiums for good drivers


Customers who have cars but do not use them often and those who have extra cars that are not used except on certain occasions, now can save on their auto insurance premiums. Progressive’s pay-as-you-drive program entails the drivers to pay only as much as they drive. This not just benefits people, who use their car sparingly, but also businessmen who park their cars at airport terminals for days on end and also drivers who pride on an impeccable driving record. Also called Snapshot, this usage based insurance program has helped many people save precious dollars.

Drivers who opt for this insurance policy can save up to 30 percent on auto insurance premiums depending on how often they drive and how well they drive. Those who are already a part of this optional program are saving up to $150 per year on an average.

Once a driver opts for Snapshot, the pay-as-you-drive insurance program, Progressive sends them a small palm-sized device. Customers have to get this device plugged to the OBD (on board diagnostic) port of the automobile. The role of this device is to record the driving data which is then transmitted to Progressive.

After a month of using this device, customers will be intimated by the insurance company if they are eligible for up to 30 percent discount that will be applicable on their policy. Drivers who drive during times when there is minimal traffic on the road and those who drive less have a higher chance of getting qualified for the discount. After a six month time period, which is term for the policy, it is reviewed again to determine the discount during the renewal period after which the driver has to return the device to Progressive. During this time period, officials from Progressive will check in with the drivers on a regular basis to determine their driving habits and request them to detach the device and re-plug it.

During the six month time period for which the device is fitted to the customer’s car, they can visit the offices of Progressive to find out the impact of their driving habits on their insurance premiums to get a better understanding of how it is calculated.