How Progressive Uses Telematics to Help You Save Money on Car Insurance

With the recent surge in car insurance prices, you might be looking for ways to reduce your premium. Several car insurance companies are now offering telematics car insurance, a new type of insurance where you can use mobile technology to share your driving data and (ideally) get rewarded for safe driving. 

Telematics lets you and your car insurance company see hard evidence of your everyday driving habits, like how fast you accelerate and brake. By sharing data from everyday car trips, safer drivers can prove that they're a lower risk for the insurance companies -- and earn cheaper car insurance.  

Progressive is one of the car insurance companies that is offering telematics car insurance. The Progressive Snapshot® telematics program uses a mobile app or easy-to-install device that lets you share your data, show your safe driving habits -- and get rewarded with possible car insurance discounts. 

Let's look at how Progressive Snapshot can unlock car insurance discounts for safe drivers. 

Progressive's telematics car insurance: Snapshot® 

The Progressive Snapshot program lets you get personalized car insurance rates based on how you drive. When you choose to sign up for Snapshot, Progressive will ask you to download the Snapshot mobile app, or you can use a plug-in device (that Progressive will send you) that is easy to install under your steering wheel. 

Progressive Snapshot (with your permission) will use this plug-in device or mobile app to collect a few types of information about your driving habits: 

• When you drive: Progressive Snapshot tracks how much you drive late at night on weekends between 12 a.m. and 4 a.m. This is a riskier time to be out on the road. 
• Sudden changes in speed: If you brake too hard or accelerate too fast, this can increase your risk of a crash -- and increase your car insurance premium. 
• Miles driven: The more miles you drive, the more likely you are to have a collision. 
• Mobile phone usage: Distracted driving is a major cause of car crashes. For Progressive Snapshot customers in some states who use the Snapshot mobile app, the app will track information about how you're using your mobile phone while driving. You can get a better car insurance discount if you avoid handheld phone activities while at the wheel, such as texting and calls.

As a new Progressive customer, you'll get an immediate discount just for signing up to participate in Snapshot (average participation discount is $94). You'll get your first Snapshot discount at your first auto policy renewal, which is usually six months after you start the Snapshot program. Snapshot customers who earn a Snapshot discount save an average of $231 per year. 

Snapshot is intended to help customers save money on car insurance, and most people do. But if you have higher-risk driving habits, you might see an increase in your car insurance premium as a result of this telematics program. Progressive says that about 2 out of 10 Snapshot drivers see an increase in car insurance costs.

Progressive telematics car insurance: Pros and cons 

Let's look at a few upsides and possible downsides for the Progressive Snapshot program. 

Progressive Snapshot pros 

• Save money immediately: Progressive gives you an immediate discount for participating in the Snapshot program, with an average participation discount of $94. (Be aware that this discount is only for new Progressive customers.) After collecting enough driving data, you can earn better Progressive Snapshot discounts when you renew your auto policy. 
• Could be good for drivers with accidents: The Ascent's review found that Progressive has competitive rates for drivers with accidents on their record. The Progressive Snapshot program could be a good way to help your driving record recover. 
• Mobile app has great reviews for iOS: The Progressive Snapshot app is rated 4.4 out of 5 stars on the App Store. 

Progressive Snapshot cons 

• Your car insurance could get more expensive: Almost 2 out of 10 Snapshot drivers actually see their car insurance premiums increase. That's not good news if you're trying to save money on car insurance. 
• Android app has lackluster ratings: The Android version of the Snapshot app got only 3.6 out of 5 stars on Google Play. Android customers complain that the app doesn't accurately measure their braking and penalizes them unfairly, or doesn't recognize when they're a passenger instead of a driver. One reviewer said to use the plug-in device instead of the Android app. 
• Discounts aren't dramatic: According to The Ascent's review, Progressive auto insurance customers with a clean driving record have an average premium of $2,104 per year. If that's your current premium, and you get the average Snapshot discount ($231 per year), that means Snapshot only saves you about 11% on car insurance. Is that worth going through all the hassle of tracking your driving data? Depending on your personal finances and driving record, you might say "yes." But many people might not want to go through all that extra effort just to save $19.25 per month. 
• Not available in all states: As with all car insurance, the details and deals depend on where you live. Progressive Snapshot is not available in California, and might not be available from all Progressive insurance agents. The participation discount (average of $94) is not available in Hawaii or New York, and the average Snapshot discount ($231 per year) does not include drivers in Hawaii and North Carolina. 

Bottom line: Progressive Snapshot doesn't promise as big of savings as some of the best cheap car insurance companies. But it could be a good choice for some drivers, especially if you're trying to reduce your car insurance premiums after a car accident.