Ark. Drivers to Get Access to Progressive Snapshot Program

Photo Courtesy of ProgressiveArkansans who display safe driving habits and put in fewer miles behind the wheel could soon be saving on insurance premiums through Progressive’s Snapshot discount program, the company announced on Monday.

Arkansas coverage providers are currently allowed to adjust auto insurance rates based on the number of miles that a policyholder puts in behind the wheel, but Progressive’s program could give low-mileage drivers even greater access to savings.

The Snapshot program works by monitoring policyholders’ driving habits through an on-board monitoring device. The device transmits data to Progressive about how far an insured car is driven on a regular basis, which times of the day it’s most often driven and whether there are any hard-braking events that could indicate risky driving behaviors.

If the data show that policyholders put in relatively few miles behind the wheel and display safe driving habits, participants can get up to a 30 percent discount.

The discount is initially assessed after the first 30 days that a policyholder uses the device and is then reassessed at the time of renewal.

Progressive was one of the first companies to offer auto insurance discounts based on driver data collected through on-board devices. It and other providers that offer larger-than-average, mileage-based discounts do so based on statistics showing that motorists who drive less tend to file fewer claims and end up costing insurers less money.

Claims data from the insurer were used in a 2008 paper by the Brookings Institution about the possible benefits of pay-as-you-drive coverage plans. The2005 claims data from Progressive showed that lower-mileage drivers filed collision, bodily injury and property damage claims at a rate that was significantly lower than motorists in the higher mileage classes.

Progressive has posted single-digit rate decreases for Arkansas policyholders for the past three years.

Although other large insurers like Allstate and State Farm are also rolling out habits-based discount programs, none are yet available in Arkansas.

About John Pirro
John Pirro is a licensed fire and casualty insurance agent specializing in various aspects of the auto insurance industry. He worked in the auto body repair industry before taking a reporting position at Online Auto Insurance News.

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