Motoring|

Progressive Promotes Snapshot Cover

Progressive Snapshot DeviceProgressive is promoting its Snapshot insurance programme by offering its plug-in device to other insurers’ customers. Drivers will be able to use the device for 30 days and then the company will give them a quote based on their own driving behaviours. This is the best way to know for sure if Progressive can offer a better deal for car insurance.

As part of this, Progressive has released new findings from the analysis of five billion driving miles. The company has been collecting and analysing the data for 15 years, and since Snapshot was launched 18 months ago, the number of miles it has analysed has more than doubled. The scheme is currently available in 42 states, and the data is considered a great sample of auto insurance customers and driving behaviours.

The insurer has confirmed that driving behaviour is more than twice as predictable than any other insurance rating factor. By accounting for actual miles driven, the time a day a motorist drives and their braking habits, the likelihood of a claim can be predicted far better than traditional rating variables alone – like the make, model and year of a vehicle, as well as the age and demographic of the driver.

Costs for higher risk driving behaviours are about two-and-a-half times that of lower risk driving behaviours. This suggests car cover rates can be far more personalised. It’s also found that 70% of motorists who have signed up with its Snapshot UBI scheme pay less for their car cover. Now it’s extending access to the programme to all drivers – not just their own customers. Everyone can try Snapshot and see if their driving behaviour can get their insurance premium lowered.

Drivers can sign up to test Snapshot and will be sent a small device that plugs into their vehicle easily. Then they can log onto their personal page and track their driving behaviour and possible savings. After 30 days, Progressive will send them a quote that includes a discount based on their behaviour. Motorists can then compare the quote with their current insurance premium and choose if they want to switch to Progressive with their personalised Snapshot savings or stay with their current insurer.

Progressive president and chief executive Glenn Renwick says the customers were right all along. For a majority of motorists, the rates they pay are higher than the risk they present in reality – much higher in many cases. Until now, insurance providers haven’t had an effective way to capture real driving behaviour and factor it into premiums. However, they have made a good start toward presonalised insurance prices that are based on measuring real-time driving behaviour.

Renwick added that they believe driving behaviour is the most predictive rating factor. However, they didn’t expect the difference to be so significant. Actual driving behaviour forecasts a driver’s risk more than twice as strongly as other factors. It shows that motorists are individuals with their own set of driving habits, which should be reflected in their insurance premium.

Progressive general manager of usage-based insurance Richard Hutchinson says the quantity of data and quality of analysis and insight are the name of the game. They have a 15-year, five billion-mile jump on other insurance companies. Their lead will only grow as more motorists try Snapshot and put their driving habits to the test. All they are doing is asking motorists why they wouldn’t give it a try, he added.

 

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