In Depth Look: Pay As You Drive

ByTom Ando

Pay as you drive insurance is a policy that is based on the customer's driving habits. Currently it is only offered by Progressive. In order to enroll for this insurance policy, one must first sign up for Snapshot when they are quoted a price to buy a Progressive auto insurance policy. Progressive then sends a device that needs to be plugged into the car which will record customer driving habits. The device will continue recording and transmitting data to Progressive for the first 31 days, after which Progressive will determine the initial customer discount.

The discount can be as much as 30% according to Progressive but many are saving in the 15-20 percent range.

After six months, the customer will send the Snapshot device back. Progressive will process all the data and ensure that the customer keeps saving money for as long as they maintain their Progressive auto insurance policy.

Snapshot Pay as You Drive Guide:

Several factors are considered when calculating a pay as you go auto insurance policy. The most important aspects are how many miles a vehicle is driven, the time of day, and the intensity of the braking of the vehicle.

Mileage: The reason for tracking how many miles are driven is simple; the more miles you drive, the chances of an accident are increased. Similarly the less you drive, the chances of an accident are also lower. This affects the premium of the policy as well; more miles increases premiums while lower miles reduces your insurance premiums significantly.

Time of day: If you drive during peak rush hours the likelihood of getting into an accident is much higher. Driving during the nighttime or during off-peak hours reduces the chances of an accident. Your insurance premium is affected by this data as well; the premiums tend to be higher if you drive more often during rush hour. The insurance premiums are lowered if most of your mileage is during off peak hours.

Braking intensity: Braking hard is a term that can describe the decrease of a car's speed at a rate that is greater than 7 mph per second. If you tent to "brake hard" often throughout the day it may indicate less cautious driving. If drivers use fewer hard brakes, they will be eligible to receive higher discounts.

The Snapshot device is an effective tool in measuring driving habits and helping determine pay as you go insurance premiums. If for any reason a customer is not satisfied with Snapshot they can send it back to Progressive without any penalties.

There are many useful tips and advice on car insurance online, so make sure to do your research before making a purchase.

Article Source:http://EzineArticles.com/?expert=Tom_Ando

Did you find this article helpful?00Get Involved0 commentsSuggest a topicArticle ToolsPrint this articleE-mail to a friendEzinePublisherReport this articleCite this articleStay InformedGet notified by email when new articles are added to this category or written by this author.Subscribe to New Article Alerts:

Insurance: Car-Auto
Tom Ando

Email Address:SubscribeCar Auto Article FeedFind More ArticlesSearchRecent ArticlesHow To Choose The Best Car Insurance DealRental Car InsuranceHigh Risk Car Insurance TipsAuto Insurance Laws And RequirementsLiability Insurance And Financial ResponsibilityThe Best Motor Trade Insurance Policies Are Up for Grabs Right Now!How to Get Cheap Auto InsuranceFacts About Car Rental InsuranceArizona Car Insurance - A Good Deal Isn't Hard to FindStaged Auto Accidents and Insurance FraudSubmitted On February 28, 2012. Viewed 2 times. Word count: 446.

MLA Style Citation:
Ando, Tom".".28 Feb. 2012EzineArticles.com.4 Mar. 2012 .APA Style Citation:
Ando, T. (2012, February 28). . Retrieved March 4, 2012, from http://ezinearticles.com/?In-­Depth-­Look:-­Pay-­As-­You-­Drive&id=6909625Chicago Style Citation:
Ando, Tom "." EzineArticles.com. http://ezinearticles.com/?In-­Depth-­Look:-­Pay-­As-­You-­Drive&id=6909625EzineArticles.com© 2012 EzineArticles.com
All Rights Reserved Worldwide

About UsFAQContact UsMember BenefitsPrivacy PolicyShopSite MapBlogTrainingVideo ArchiveAdvertisingAffiliatesCartoonsAuthorsSubmit ArticlesMembers LoginPremium MembershipExpert AuthorsEndorsementsEditorial GuidelinesTerms of ServicePublishersFollow UsTerms Of ServiceEzines / Email AlertsManage SubscriptionsEzineArticles RSS

View the Original article