Progressive continues to generate hype for its Snapshot device
Progressive Insurance has been making waves in the world of insurance news with its in-car device that helps calculate the cost of auto insurance policies. In 2011, Progressive introduce an ambitious new auto insurance scheme that provided drivers with a way to save money on their coverage by providing the company with detailed data concerning their vehicles and driving habits. This is accomplished through a device called Snapshot, which can be installed in any vehicle manufactured after the year 1996.
Device capable of collecting data used to price auto insurance policies
Snapshot is a lightweight and discreet device that is meant to collect data concerning a users driving habits and the performance of a vehicle. This data is used by Progressive in order to calculate the cost of auto insurance. The initiative has proven widely successful for the company and larger insurers, such as State Farm and GMAC, have been showing interest in adopting similar initiatives. Consumers have been showing favor for the initiative because of its potential to save them money on their auto insurance policies.
Early adopters may be establishing a strong foothold against the competition
Recently, Towers Watson, a leading professional services firm, noted that early adopters of this kind of auto insurance service are likely to establish a major lead over other insurers in the industry. Analysts suggest that the most attractive implication of the Snapshot device, from a consumer’s perspective, is financial. Progressive suggests that safe drivers stand to spend significantly less on their auto insurance policies, while those with poor driving habits will spend significantly more.
Progressive initiative not free from criticism
Though Progressive has won acclaim for its Snapshot device, the insurer has also garnered some criticism. Collecting a driver’s information is often construed as a violation of privacy. Moreover, the insurer, as well as others in the auto insurance industry, are accused of using frivolous information, such as how hard the brake pedal is pushed, to dictate the price of auto insurance policies.