Progressive Now Offering Pay-As-You-Drive Insurance in 32 States

Perhaps the future of auto insurance is finally upon us. Progressive announced yesterday that it has begun a national advertising program for its Snapshot Discount, a Pay-As-You-Drive (PAYD) program that offers drivers the chance to lower their car insurance rates based on real-time analysis of their driving habits through the device designed to read and report a driver's habits back to the insurer. While this technology has been available for some time, Progressive claims to be the first insurer to bring it to the masses.

The Snapshot device, which plugs into the onboard diagnostic port (OBD-II) found near the steering wheel of most cars built after 1996, houses an array of telematics and mobile technologies that automatically share their driving patterns with Progressive.

The insurer says it has been awarded a series of patents on the methods and systems used in Snapshot, creating a program that's unmatched in its advanced technology, security, and ability to optimize discounts for customers.

The Snapshot discount is not based on location or speed. Given the device lacks GPS technology, Progressive never knows where the car is, and doesn't take into account how fast the car is being driven.

After 30 days of driving with the device, the customer can log onto their policy to see how much of an initial discount they've earned, and see what changes they can make to their driving habits to save even more.

At the end of the six-month policy term, the customer returns the device to Progressive, and the carrier calculates the driver's final discount. The initial discount is applied to the first six-month policy term, and the final discount applies to policy terms going forward. The insurer boasts drivers can save up to 30% on their policy.

The Snapshot PAYD program is currently available in 32 states, including Alabama, Arizona, Colorado, Connecticut, Florida, Georgia, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Montana, Minnesota, Missouri, Nebraska, Nevada, New Hampshire, New Jersey, New York, Ohio, Oklahoma, Oregon, Rhode Island, South Carolina, South Dakota, Texas, Utah, Vermont, Virginia and Wisconsin. The insurer says that more states will be added throughout the year.

"Snapshot is about much more than just really cool and fun-to-use technology—it's a whole new way to think about car insurance," says Progressive President and CEO Glenn Renwick. "We believe Snapshot is a game changer—representing the future of auto insurance as our mobile and interconnected world gives us the opportunity to offer immediate and substantial savings to our customers."