Progressive announced it will expand its pay-as-you-drive discount program nationwide this year.
Now available in 32 states, Progressive's Snapshot Discount lets drivers lower their car insurance rates by as much as 30 percent based on real-time analysis of their driving habits. People who drive less, in safer ways and at safer times of day receive discounts.
The company began national advertising for the program March 14 and will add states throughout the year. More than 250,000 drivers have participated in the discount program, which the company says saves customers an average of $150 per year.
A device supplied by the insurance company plugs into the vehicle's on board diagnostic port located near the steering wheel. The device tracks mileage and driving habits and sends the data to the insurance company wirelessly. After 30 days, customers can log in to see how much of an initial discount they're earning and what changes they can make to their driving habits to save more. The device does not track speed or location.
At the end of the six-month policy term, the customer returns the device to Progressive, and the insurer calculates the final discount. The initial discount is applied to the first six-month policy term and the final discount applies to policy terms going forward.
GMAC, American Family Insurance, Allstate, State Farm and the Automobile Club of Southern California have also rolled out mileage-based programs, but not in every state.