In what trade press reports are describing as a "bombshell," market leader Progressive is acknowledging its Snapshot device can and will raise premiums for some drivers -- about one in five may see an increase.
"You're right -- our Snapshot program is evolving," Progressive spokeswoman
A new model has been launched in
The company plans to roll out the new program to additional states beginning this summer. No word yet on
More than 2.5 million customers have tried Progressive's Snapshot program. Other insurers have similar plans that typically feature devices that plug into the car, such as in a diagnostic port below the steering column. If drivers sign up and save money, wonderful. But
Progressive found that the majority of drivers, nearly 80 percent, deserve a discount for their safe driving, Hendrick said: "In fact, about half of all Snapshot participants will get a double-digit discount in our new model. We're also offering a discount as soon as drivers sign up for the program, which they'll keep until renewal as long as they leave the device plugged in."
A "small portion of the riskiest drivers could see a higher rate," she said.
She added, "It's important to call out that the changes we're making will not affect anyone who has previously signed up for the program under different terms. We will honor the terms our customers signed up for and they will retain the discount they earned."
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