Pennsylvanians Skeptical of Car Insurance Monitoring Device

Black sports coupeNot everyone in Pennsylvania is excited over a data-driven car insurance plan that offers a discount based on a person’s actual driving habits.

Auto insurance giant Progressive drew criticism in Pennsylvania when it filed to initiate the Snapshot auto insurance discount plan, which gives drivers who don’t drive far, late at night or slam on their brakes up to 30 percent off on their coverage rates.

Opponents of the practice say that Progressive has been too vague about the program’s data collection process, reports the Philadelphia Inquirer.

Progressive announced in a press release that the device, which is implanted in a vehicle for a 30-day monitoring period, is used to record car mileage, braking habits and the times of day the vehicle is used.

Philadelphia’s director of consumer affairs, Lance Haver, says that Progressive has not provided enough information as to how the data will be used or shared, according to the Inquirer.

“If the company would guarantee privacy, let consumers know what information will be collected, how it will be evaluated and used, then this type of insurance holds promise,” Haver told the Inquirer. “Until then, the risk of abuse outweighs any benefits.”

About Ben Zitney
Benjamin Zitney has been covering the auto insurance industry for the past 2.5 years. Before coming to Online Auto Insurance News, he produced an extensive company history of the 30-year-old California Joint Powers Insurance Authority and worked at the Cal State Long Beach Daily Forty-Niner as a reporter, copy editor and news editor.

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