You probably have seen the Progressive Insurance ads on television where the spokeswoman asks the man if he is a safe driver and he says in an excited voice yes. Then she says “DISCOUNT.” Well, Progressive Insurance has taken this discount one step further.
They are now offering drivers in Ohio the opportunity to save even more on their car insurance. What is the catch? They have to allow a Progressive Insurance agent to install a monitoring device within their car.
What will the device monitor?
• Their speed
• How often they apply hard brakes
• How often they drive at night
What will this device then do? Calculate the data received determine if the driver qualifies for extra discounts.
According to Progressive, this device is a volunteer device and will not be put on your car, unless you want to use it. They also say that they will not share any information pertaining to your data with anyone, unless they are required to do so because of an accident.
Why would anyone want to install such a device in their car? They might be decide to do so if they generally drive the speed limit and don’t drive at night. Why? They can save anywhere from 25% to 34% on their insurance payments.
So far, Ohio and twenty other states are participating in this program trough Progressive. They estimate that over 1,000 customers are all ready saving money. The program is called Snapshot.
Yet, progressive is not the only insurance company that is beginning to offer their customers savings through monitoring their driving habits, a bit more closely.
GMAC is offering its customers a savings of 54% for low mileage through a program that uses equipped Onstar programming to monitor odometer readings.
Safecoast OnBoard Advisor is offering their Commercial drivers various discounts via monitoring programs
Travelers insurance is currently working on some new insurance programs that can monitor their drivers and help give them discounts as well.
Is Snapshot or a similar program a good way for you to save some money? Is it a little too big Brother for you?
If you do decide to sign up for a monitoring program, do be sure to ask your insurance one question. Is there any way such a program could actually cause your rates to raise? For instance, would they rates go up if the device found out that you actually go over the speed limit more than you drive under it?