Progressive Insurance is releasing a new program for its policyholders where they can opt to install a tracking device in their vehicle in order to receive a discount on their car insurance rates, according to The Detroit News.
The Snapshot discount program involves installing a monitoring device on vehicles that records driving times, frequency and how fast – and hard – a driver hits the brakes. Drivers who demonstrate responsible habits will be eligible to receive up to 30 percent off their insurance costs.
Heather Day, a spokeswoman for Progressive, told the newspaper that the devise is the size of a garage door opener and plugs into the computer diagnostic port of a vehicle. It does not contain a GPS tracker, meaning that the company will not be able to track the drivers location or even how fast they are going relative to the speed limit.
Detroit resident Tiana Kennedy told the paper that she signed up for the program soley for the discount, which has already saved her 15 percent on her insurance coverage.
Progressive said 100,000 have already signed up for an earlier version of the program, which has been introduced in 27 states.
John Egan, a managing editor of InsuranceQuotes.com, said in an interview that the program is beneficial for both the driver and the insurer.
"Lower-risk drivers are going to mean a lower number of claims," he said.
Other auto insurers have introduced similar programs that reward policyholders for safe driving. California approved of the state's first pay-as-you-drive program, where Automobile Club of California and State Farm policyholders can choose lower-mileage driving programs in order to save money on their insurance. State Farm said their Drive Safe & Save initiative, which will begin in February, will save their customers an estimated $31 million.