Drivers might save on insurance by not driving much

State Police urge caution on eve of holiday travel period

Progressive Insurance Co. will charge customers on how much they drive and when, based on GPS data sent to the company.

By: Peter Bacqué | Times-Dispatch
Published: December 07, 2010

Progressive Insurance will offer Virginia auto drivers insurance based on how, when and how much they drive.

Safe, low-mileage customers could save up to 30 percent on their car insurance, according to the Ohio-based company.

Progressive’s Snapshot program uses a device attached to the on-board computer of the customer’s car to record driving data and send it to the company.

"We’re getting as close as we can to a usage-based product, which would be ideal," said David Bailey, president of Bailey Insurance Agency in Richmond. He is an independent agent who represents Progressive.

Drivers putting lots of miles on their cars annually, driving in the wee hours and slamming on their brakes won’t benefit from the program

But motorists driving less than an ordinary number of miles, while using moderate braking and avoiding driving between midnight and 4 a.m., could save money, the company said.

"For the first time, drivers can pay for car insurance based on how they drive," Richard Hutchinson, Progressive’s general manager of usage-based insurance, said in a statement yesterday.

More than 100,000 Progressive customers nationwide have signed up for the program, the company said. The company is now offering it in Virginia.

"Most customers save with this program," company spokeswoman Susan Rouser said.

Progressive’s recorder-transmitter system works through the wireless network, Rouser said: "It’s not a GPS-based system. The system does not track location."

The Snapshot program is available to new Virginia customers who buy policies directly from Progressive, she said, but not through agents now.

Other insurers, including Nationwide, offer similar programs, according to the State Corporation Commission.

After drivers sign up for the Snapshot program, the company sends them the device, which plugs into the on-board diagnostic port of their car.

After 30 days, customers will find out if they’re eligible for a discount based on their driving habits and see that discount applied to their policy.

At the end of the six-month policy term, Progressive will determine the renewal discount and the customer returns the device to the company.

Progressive said it may periodically check on customers by asking them to plug in the device again.

Snapshot is voluntary and customers can opt out at any time, Progressive said. The program won’t make customers’ rates go up, the company said.