Nebraskans who don’t drive often, dangerously or late into the night can soon be rewarded for their safe driving habits through a discount program soon to be offered in their state by Progressive Insurance.
The Snapshot discount program gives breaks on auto insurance by allowing consumers the chance to prove themselves to be low-risk motorists via data collection while on the road.
This is a different direction for auto insurance, where rates are typically determined by expected loss or tickets, Nebraska Insurance Director Ann Frohman told the Omaha World-Herald.
Customers who sign up for the program receive an electronic device that is implanted in the insured car and monitors the vehicle’s activity. The Snapshot device collects data on the times the car is driven, the distance the car is driven and how the brakes were used during the drive.
These categories are significant, reports the World-Herald, because drivers on the road late at night or early in the morning are at a greater risk of being involved in an accident, and hard braking “indicates aggressive driving habits such as tailgating or stopping late for traffic signals.”
Customers are eligible to receive up to a 30 percent discount on their auto insurance after 30 days of monitoring. After the initial six-month policy period ends, Progressive reviews the policy and uses the data to calculate any discounts.
“More than 100,000 customers countrywide get personalized car insurance rates by sharing a picture of how, how much, and when they drive,” says Progressive’s general manager of usage-based insurance, Richard Hutchinson. “The Snapshot discount is transforming auto insurance because, for the first time, drivers can pay for car insurance based on how they drive.”
The Snapshot discount, also known as MyRate, is already available in 20 states.