Progressive moves into world of usage-based car insurance

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    Progressive is now offering usage-based vehicle insurance in Delaware, with the help of newly developed technology.

    Courtesy of Progressive

     

    Known as Snapshot, the insurer claims the approach can save up to 30 percent on insurance bills. The technology has already been tested out on a half a million drivers.

    Progressive uses a device that plugs into the on-board diagnostic system of a vehicle during a 30-day period The device tracks miles traveled, the time of day the car is driven. The device can also  be used after the 30 days to better track driving patterns.

    The company, obviously sensitive to privacy issues, notes that the device does not use a GPS system.

    The usage model addresses the current by guess and by golly approach insurance companies use to calculate use.

    Typically, the policy-holder is asked the number of miles driven a week to work. In some cases. a commute to New York City carries the same charges as a trip to Philadelphia.

    You can log on here to find out more. – Doug Rainey

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