System to track your driving habits could save lives

April 03, 2011|By Jeff Gelles, Inquirer Columnist
http://articles.philly.com/2011-04-03/business/29377339_1_mayfield-village-progressive-usage-based-insurance

Remember when you were learning to drive, perhaps from Mom, Dad, or an older sibling?

Chances are you were warned not to follow too close - "Don't tailgate!" - or to take other risks that might end with your slamming on the brakes to avert a crash. Your teacher may have also cautioned against driving in the wee hours, especially after the bars closed.

What if you could install an electronic monitor to see if you - or your children - were still heeding all that sage advice, and reward you if you were?

Some people might find it unsettling to have an electronic version of their older brother alongside them as they drive - even a little, uh, Big Brotherish.
But Progressive Insurance is betting that you'll welcome the chance to show how well you learned - especially if you can earn discounts of up to 30 percent off your auto-insurance premiums.

Last year, Progressive proposed bringing its "MyRate" plan to Pennsylvania, after introducing it two years earlier in New Jersey and offering pilot versions for more than a decade. The Ohio insurer withdrew the proposal after objections from Lance Haver, Philadelphia's director of consumer affairs, and from the state Insurance Department.

At the time, city and state officials said there were too many unanswered questions. But last week, Progressive introduced its new-and-state-approved version of usage-based insurance in Pennsylvania. Now called "Snapshot" and offered in 33 states, the Progressive program is also the subject of its first-ever national ad campaign.

"Flo," Progressive's energetically eccentric spokes-character, may be singing Snapshot's praises on TV, but Haver is still critical - concerned, in particular, about what could happen if Progressive ever changed a privacy policy that says the company won't sell data about policyholders' habits. I'll get back to that in a moment, after I explain how Snapshot works.



Using your car's computer, Snapshot will track a variety of data, including how far you drive, when you drive, and your speed.