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Progressive Takes Pay-as-You-Drive Program Nationwide

Progressive Insurance recently announced that it is now offering its Snapshot program to all states. The pay-as-you-drive (PAYD) program had been implemented in a few dozen states, most recently Florida, but now is available for all customers.

How Do Pay-as-You-Drive Programs Work?

If you’re not familiar with the Snapshot program, it is a pay-as-drive-option that judges your driving behaviors to determine how much you should be charged for your auto insurance. For Progressive’s program, drivers are asked to install a tracking device called an on-board diagnostic (OBD) port that records and sends driving data to the company.

After driving the car for 30 days with the device intact, the company is able to determine your driving habits. At the end of a six-month policy term, the company will then issue a discount for the next term that could reach as high as 30 percent for those who travel fewer miles and are deemed safe drivers.

Other Insurers Offering PAYD Programs

With Progressive Insurance finding success in offering its PAYD program, other insurance companies have started giving similar discounts. Both State Farm Insurance and GMAC Insurance offer discounts to some customers if they allow their OnStar diagnostic systems to report their mileage.

Also, Allstate recently launched a Drive Wise program that requires drivers to install a similar device as Progressive’s to receive similar discounts. Its program is only available in Illinois so far.

Is PAYD for Me?

Not all drivers feel comfortable with the idea of allowing an insurance company to keep track of their driving behaviors in order to receive a discount. The thought of compromising privacy for some is just too much of a sacrifice.

However, if you are not a driver who is concerned with this issue, PAYD could reduce insurance rates considerably. So if you’re not sure whether it’s for you, take time to learn about programs offered by various insurance companies and also consider other auto insurance discounts before making a final decision.

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This entry was posted on Friday, March 25th, 2011 and is filed under Auto Insurance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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