Auto insurers introduce pay as you drive insurance

Usage based auto insurance

Usage based coverage is increasing in popularity among carriers and drivers. Large insurers such as Allstate and Progressive are taking the auto industry in a new direction with pay as you drive insurance policies that track a motorist’s average speed, mileage, and other driving details that can help those customers to experience significant discounts in their premiums if they prove to be good drivers. Though usage based policies had a slow introduction, these efforts are now being accelerated. Carriers are finding that the popularity and possibilities of this type of…

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Progressive offers a huge discount with new “Pay As You Drive” program

Earlier this year, the Progressive insurance company began offering Florida residents a pay-as-you-drive insurance program. Dubbed Snapshot, the program gives consumers lower rates of approximately 30% on average, based on their driving behavior. The insurer analyses driving habits with the help of a small device that is installed in vehicles. According to the insurer, the device has tracked over two billion miles, and is now ready to be used throughout the nation. Drivers that signed up are reporting a savings on average of $150 annually. Progressive notes that the possible…

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