Earlier this week we announced the winners of our 2013 Leadership Awards. Progressive Insurance was one of the winners.
As Flo, the bubbly white-aproned spokesperson for Progressive Auto Insurance says, “It’s like, from the future, right?” regarding Snapshot, the company’s “pay-as-you-drive” auto insurance. It may seem futuristic, but Progressive has been developing the concept for a long time – the company first launched a forerunner of today’s plan in 1998 and introduced the latest iteration, Snapshot, in 2010.
Pay-as-you drive insurance, alternately referred to as “usage based” insurance, determines a driver’s insurance rate based on the customer’s actual driving habits rather than the type of car, age, or gender (typical insurance indicators) of the driver. While Snapshot is not the only usage based insurance program on the market, it is the most widely available one, offered in 42 states and the District of Columbia.
The name “Snapshot” refers to a data recording device installed in customers’ vehicles for six months to record driving habits. The device measures the time of day traveled, how often the driver brakes and distance traveled each day (The device does not track the customers actual geographical location). The driving data is then sent to Progressive to determine the customer’s premium – which cannot increase but can decrease by as much as 30 percent. According to Progressive, Snapshot is best for people who drive less, drive responsibly and drive during safer times of day.
In the first year of the Leadership Award for Business, Smart Growth America is recognizing Progressive for incentivizing smart growth development for consumers by offering discounts to people driving less often, during safer times of day and less aggressively.
“The only thing (Snapshot) cares about is saving you money, and I am sure that’s what you care about!” says Flo. Progressive’s Snapshot and smart growth development are both about saving money, and that is good business for everyone.
Smart Growth America’s 2013 Leadership Awards will be presented at a ceremony tonight in Kansas City, MO. Congratulations to this year’s winners!