A new form of auto coverage, called “pay-by-the-mile” insurance has now been designed to help people to save money on their premiums and to encourage them to drive less and use public transportation more regularly. The way that the coverage works is that drivers who put fewer miles on their vehicles will pay a lower rate for their insurance every month. It places a direct link between their vehicle’s mileage and their insurance plan. The plan is based on an average annual driving distance of 19,000 miles. Though it does…
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Patent for usage-based insurance goes to Progressive for the fourth time
Progressive Insurance has announced that it has received a patent for usage based system technologies for the fourth time for its Pay As You Drive program, which is available to drivers in the United States. The program involves using a driver’s safety score to change his or her premiums based on monitored driving data and is now patented under U.S. Patent No. 8,090,598. The usage based insurance (UBI) program at Progressive is called Snapshot, and it is now available to drivers in the District of Columbia and 39 other states.…
Read MoreAuto insurance based on mileage, IntelliDrive, can offer greater savings to drivers
Recent data has been suggesting that a growing number of consumers are attempting to save money by reducing the amount of driving that they’re doing. Though the main reason for this is to decrease the amount of gas that is used, and lower the amount of maintenance needed on the vehicle, Travelers is now offering another incentive to customers to keep their mileage down. The new IntelliDrive insurance product rewards low-mileage drivers with discounts of up to 5 percent at the time of enrollment, and an additional discount of up…
Read MoreCalifornia Car Insurance: Sequoia offering new “Pay As You Go” insurance plan
Following the latest insurance trend sweeping the nation, Sequoia Insurance Co., one of the largest insurers in California, will begin offering a pay-as-you-drive auto insurance policy. Sequoia joins State Farm and Progressive in offering this particular policy, increasing the options available to California drivers. Progressive was the first to incorporate this concept into their coverage options after finding that fewer people were taking to the road in light of rising gas prices and other costs. Drivers interested in the coverage must first have a small device installed in their vehicles.…
Read MoreProgressive 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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