Author Box
Articles Categories
All Categories
Articles Resources

In Depth Look: Pay As You Drive

February 27, 2012 | Comments: 0 | Views: 147

Pay as you drive insurance is a policy that is based on the customer's driving habits. Currently it is only offered by Progressive. In order to enroll for this insurance policy, one must first sign up for Snapshot when they are quoted a price to buy a Progressive auto insurance policy. Progressive then sends a device that needs to be plugged into the car which will record customer driving habits. The device will continue recording and transmitting data to Progressive for the first 31 days, after which Progressive will determine the initial customer discount.

The discount can be as much as 30% according to Progressive but many are saving in the 15-20 percent range.

After six months, the customer will send the Snapshot device back. Progressive will process all the data and ensure that the customer keeps saving money for as long as they maintain their Progressive auto insurance policy.

Snapshot Pay as You Drive Guide:

Several factors are considered when calculating a pay as you go auto insurance policy. The most important aspects are how many miles a vehicle is driven, the time of day, and the intensity of the braking of the vehicle.

Mileage: The reason for tracking how many miles are driven is simple; the more miles you drive, the chances of an accident are increased. Similarly the less you drive, the chances of an accident are also lower. This affects the premium of the policy as well; more miles increases premiums while lower miles reduces your insurance premiums significantly.

Time of day: If you drive during peak rush hours the likelihood of getting into an accident is much higher. Driving during the nighttime or during off-peak hours reduces the chances of an accident. Your insurance premium is affected by this data as well; the premiums tend to be higher if you drive more often during rush hour. The insurance premiums are lowered if most of your mileage is during off peak hours.

Braking intensity: Braking hard is a term that can describe the decrease of a car's speed at a rate that is greater than 7 mph per second. If you tent to "brake hard" often throughout the day it may indicate less cautious driving. If drivers use fewer hard brakes, they will be eligible to receive higher discounts.

The Snapshot device is an effective tool in measuring driving habits and helping determine pay as you go insurance premiums. If for any reason a customer is not satisfied with Snapshot they can send it back to Progressive without any penalties.

There are many useful tips and advice on car insurance online, so make sure to do your research before making a purchase.

Source: EzineArticles
Was this Helpful ?

 
0
 
0
 
Rate this Article
 vote(s)
Feedback
Print
Re-Publish

Article Tags:

Pay As You Drive

,

Progressive Snapshot

,

Braking Intensity

,

Mileage

,

Snapshot Device

Auto insurance is probably one of the most expensive insurance types in Canada. An average car insurance policy in Canada costs approximately $1,200 per year and in Ontario, the largest Canadian

By: Alex Saltykov l Insurance > Car Auto l July 09, 2013 lViews: 553

Your house is often your largest investment that you need to protect via insurance. We created a list of multiple savings tips related to Home insurance and hope that these will help you to save a

By: Alex Saltykov l Insurance > Home Owners Renters l December 27, 2012 lViews: 380

Most auto insurance companies design specific car insurance policies for classic and antique cars. If you think you have a classic car and want classic car insurance, you will need to be sure that

By: Richard l Insurance > Car Auto l October 17, 2012 lViews: 570

Business Overhead Expense Insurance Plans can provide cash flow to the business in the event of a disability to a key employee or owner. For a small, growing company it might make the difference

By: T. Spencer White l Insurance > Disability l July 17, 2012 lViews: 244

Workers compensation costs are rising. According to a recent report by the Workers Compensation Research Institute (WCRI), indemnity costs per claim (the loss of earning capacity, payments for lost

By: Kelly C. Williams l Insurance > Workers Compensation l July 08, 2012 lViews: 223

One of the most helpful government programs out there is the SSI Disability program. A person that is legitimately disabled, and cannot work to provide an income for themselves for their family

By: Oleg Winter-Burnett l Insurance > Disability l July 04, 2012 lViews: 282

Auto insurance is probably one of the most expensive insurance types in Canada. An average car insurance policy in Canada costs approximately $1,200 per year and in Ontario, the largest Canadian

By: Alex Saltykovl Insurance > Car Autol July 09, 2013 lViews: 553

Most auto insurance companies design specific car insurance policies for classic and antique cars. If you think you have a classic car and want classic car insurance, you will need to be sure that

By: Richardl Insurance > Car Autol October 17, 2012 lViews: 570

Car insurance can be expensive, even for good drivers. However, if you are deemed as high risk, it can be even more costly to get insured. The good news is that there are ways to find affordable (or

By: Raphael Locsinl Insurance > Car Autol April 24, 2012 lViews: 214

Car insurance may be a requirement in many states. Not asking the right questions when buying insurance could result in consumer fraud when a person needs the help of insurance coverage.

By: Vern Ottel Insurance > Car Autol April 24, 2012 lViews: 191

Motor homes are expensive with even modestly valued vehicles in excessive of fifty thousand pounds. With that said the sale of motor homes even in today's economic climate seem to be bucking the tend

By: Jackie Verdierl Insurance > Car Autol April 23, 2012 lViews: 199

Multi car insurance is a great opportunity for any family who owns vehicles and can potentially save people a lot of money. This article will summarize the important aspects of multi car insurance.

By: Guy Levil Insurance > Car Autol April 23, 2012 lViews: 214

Many insurance companies state that they use credit scores to determine rates if you look closely through your insurance paperwork. Using credit scores helps insurance companies determine the

By: Tom Andol Insurance > Agents Marketersl March 22, 2012 lViews: 216

Many folks who travel opt to rent a car for their trip to avoid airport congestion, heightened security, and scanning. A rental car is a really good alternative especially if you are planning on

By: Tom Andol Insurance > Car Autol February 27, 2012 lViews: 134

Being in the high risk driver category does not last forever if you strive to improve your driving record and if you make good choices. If you are interested in lowering your insurance payments it is

By: Tom Andol Insurance > Car Autol February 27, 2012 lViews: 173

Insurance fraud is an increasing problem nationwide costing companies over $70 billion a year. There are many reports of fraudulent insurance claims and staged auto accidents resulting in insurance

By: Tom Andol Insurance > Car Autol February 27, 2012 lViews: 149