Usage Based Insurance
Many auto insurance companies are now offering the option of placing a tracking device in your vehicle for a brief period of time that will determine some of your driving habits. Our agency offers the Snapshot Program from Progressive and the RightTrack program recently introduced by Safeco Insurance.
Both programs offer an initial discount for those who enroll in the program. The Progressive initial discount is 10% and the device remains in your vehicle for the first 6 month policy period. The Safeco program has a 5% initial discount and the device remains in the vehicle for 3 months. Both programs will determine a "final discount" at the end of the program which can be as high as 30%. The final discount will remain on your policy for as long as you continue coverage with the company.
The device is mailed to you directly by the insurance company and plugs into the vehicle's diagnostic port under the steering column. Typically what is being measured is whether you drive between midnight and 5am, if you are making sudden stops with hard braking, total miles driven and "jackrabbit starts". Once the term is completed the insurance company will send you a self addressed stamped envelope that is used to return the device.
The devices report back to the insurance company via cellular communications and are not GPS enabled devices. Also, drivers will receive email communication with the insurance company regarding the program progress and final discount.
For drivers who are not racking up lots of miles ( greater than 15,000 annually ) and do not drive aggressively, these discounts can be a great way to lower your auto insurance rates and save lots of money on your premiums for years to come.