Progressive Determines Driver Safety With Device, Lures Customers

Luke Vandezande
by Luke Vandezande

Drivers who buy auto insurance from Progressive are probably accustomed to the idea of having their driving patterns tracked for the chance at a discount, but now the company is using its program to tempt customers from under competing companies.

Probably one of the most logical policies in the insurance world today, Progressive offers current customers and prospective clients the chance to put a tracking device on their car for a month. The black box records driving data distance travelled, braking patterns and even what time you’re driving. That information is reported back to the company, definitively answering who deserves a coveted good driver discount.

The devices work with any car made after 1996 and plug into the OBD-II port directly. Roughly 70 percent of drivers who offer to prove themselves end up with discounted rates according to the company which touts its program as the first time drivers can objectively compare rates between insurers.

It’s an industry-first move that drivers with competing companies would probably be wise to participate in considering there doesn’t seem to be anything they can really lose — assuming a bad report won’t haunt you down the road.

With 5 billion driving miles already analyzed, Progressive says its driving-behavior data is twice as good at predicting risk as any other factor.

If you feel apprehensive about strapping a monitoring device to the family jalopy for fear of facing higher rates – don’t. Industry analysts are predicting that the opposite is more likely. Those who refuse to forfeit daily driving data will probably start to seem like a statistical risk, ultimately facing higher premiums.

[Source: Automotive News]

Luke Vandezande
Luke Vandezande

Luke is an energetic automotive journalist who spends his time covering industry news and crawling the internet for the latest breaking story. When he isn't in the office, Luke can be found obsessively browsing used car listings, drinking scotch at his favorite bar and dreaming of what to drive next, though the list grows a lot faster than his bank account. He's always on <A title="@lukevandezande on Twitter" href="http://twitter.com/lukevandezande">Twitter</A> looking for a good car conversation. Find Luke on <A title="@lukevandezande on Twitter" href="http://twitter.com/lukevandezande">Twitter</A> and <A title="Luke on Google+" href="http://plus.google.com/112531385961538774338?rel=author">Google+</A>.

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