snapshot in missisipi

http://www.clarionledger.com/article/20110622/BIZ/106220320/Usage-based-car-insurance-launched-by-Progressive?odyssey=mod|newswell|text|Home|s

Progressive Insurance has launched a usage-based auto insurance discount program that's said to be the first of its kind in Mississippi.

The company's Snapshot program allows policyholders to save up to 30 percent based on things like how often they drive, how safely and at what time of day or night a person drives.

The company said "several thousand" customers in Mississippi have signed up since Snapshot came to the state last month but wouldn't provide an exact figure.

The program centers on placing a device below a vehicle's steering column that will track mileage, how often a vehicle is likely accelerating or braking based on mph readings and what time of day or night someone is driving.

It does not have GPS capability, so it cannot track where a motorist is at a given time, says Richard Hutchinson, Progressive's Snapshot program general manager.

It's not designed to measure if a motorist is illegally speeding or raise their insurance rates if usage is high, he said.

Generally, the fewer miles and instances of accelerating and braking a motorist has, the more likely that person is to save, he said.

"It looks at what kind of driver you are versus the rest of the population," Hutchinson said. "Are you an aggressive driver? Are you a defensive driver? This gives people the chance to prove the old argument of 'I can drive better than you think I can.' "

State Insurance Commissioner Mike Chaney says it's the only usage-based program in the state that uses technology to transmit driver data to determine savings.

"A lot of carriers are moving toward a system which charges people based on their usage," he said.

State Farm's "Drive Safe and Save Program" touts savings of up to 45 percent based on how many miles someone drives.

Policyholders can send odometer readings to the company directly or through OnStar devices in their vehicles to determine the amount of savings.

The program is available in four states, and State Farm spokesman Roszell Gadson says there are no immediate plans to launch it in Mississippi.

Progressive's devices have to be purchased as part of a driver's policy. After 30 days, a motorist's initial savings are determined, with a definitive amount set after six months. The devices are then sent back to the company, Hutchinson said.

Chaney said he hopes insurance risk isn't unnecessarily shifted should a huge chunk of motorists perform successfully under Progressive's program.

But he said such programs also could lead to greater driver safety in the state.

Snapshot is available in 37 states.