What you must know about Pay as you drive

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When we talk about Pay as you drive programs offered by several auto insurance companies the first association that most drivers have is a negative one. They dislike the fact that they are sending very personal and individualized data to their auto insurance companies and they fear that they will be "punished" if they don't drive slow or carful. Lucky, a few years back Progressive auto has started a campaign that fights against this misinformation and stigma that Pay as you drive programs have.
First you need to know what the Snapshot device (the tracking device used by an auto insurance companies to collect and send back the data) records in the first place in order to fully understand how it works. Snapshot just monitors

Total mileage that you travel to

How many times you have hit the break hard

How many times have you been behind the wheel between midnight and 4am

What Progressive auto wants you to know and understand is that Snapshot does not record how fast you drive, if you are over speeding and does not record where you driver to as it does not come with a GPS device as well.


Also it's very important to understand that despite the suspicions, over 70% of the drivers that have decided to give it a try actually got a lower quote (by up to 30%) for their auto insurance policy created by Progressive auto Insurance.

Those that did not qualify for the said discount were not punished in any way but have in fact just returned to their normal policy and price that they got before testing the Pay as you drive program. In this case a driver cannot really lose anything by giving it a try expect for a few numbers of their auto insurance policy price.

The best part of this is that the program allows for the young drivers to take complete control over the cost of their policy, all they need to do is to apply to "Pay as you drive" program and get started. After that the Progressive auto will ship them a device called Snapshot. After that device is installed in the car (the installation is extremely easy as it just requires the driver to plug it in to the OBD - II port that most modern cars have) it will start to collect and track data about the drivers driving skills and habits. The total duration of the tracking period is just 30 days and that will be enough for the new policy to be calculated.


That way a young driver has a chance to actually earn a cheaper auto insurance policy and pay less by using Progressive auto's Pay as you drive plan. Of course, the better the driver is the lower the policy will cost in the end but Snapshot keeps track of the times that the break was hit hard, how many miles total the diver traveled to as well as how many times the driver was behind the wheel in the time between midnight and 4 A.M.

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