Recently Progressive auto insurance has been making a push for customers to join their Snapshot driving monitoring program. For Snapshot, customers plug a device into the computer port in their car and it monitors miles driven, time of day you are driving, and the number of “hard brakes”—defined as decreasing in speed at least 7 miles per hour per second. If Progressive likes your driving habits, you can earn a discount on your insurance of up to 30%. I recently signed up for the service, so I thought I would read through the Progressive Snapshot Participation Terms and Conditions (PDF) and share my analysis here.
1. Recorded Information. The Snapshot device records vehicle speed and time information (times when driving), vehicle identification number, G force, and when the device is connected or disconnected from the vehicle. Progressive the determines miles driven, and rates of acceleration and braking from the collected information. There is no GPS, although with your consent Progressive can determine the location of the vehicle via cellular signal.
2. Returning the Device. When the program is over or when you are finished with the program, the device needs to be returned to Progressive “in a timely manner,” and in good condition. If it is not returned according to these parameters (or not returned at all), your Progressive policy can be charged up to $75. Additional documentation that came with my Snapshot device said it would be $50, but the terms and conditions are typically what govern these situations, so you should assume that Progressive can charge up to $75 for damaged or unreturned devices.
3. Use of Information. By enrolling in Snapshot, you are consenting to Progressive retaining and using the information gathered from the device. Once the device is returned, the information will be wiped from it, but Progressive will still retain copies of the information. Progressive might also use the Snapshot information if you are in an accident, and you may be required to preserve and provide the information if a lawsuit occurs due to the accident. Interestingly, if you file an insurance claim with Progressive, they will not use the Snapshot data to resolve the claim unless they receive your permission first. I assume that if you refused, Progressive would claim that you are hindering their investigation and may not process the claim fully, but nothing about this is noted in the Snapshot terms and conditions.
4. Discount (or Surcharge). The Snapshot data will be used to determine your discount (if any) or surcharge (in Rhode Island). This only applies to bodily injury, property damage, and collision coverage. Interestingly, a “technology expense” may be added to your bill to cover the cost of the device and the amount Progressive needs to pay to have the data sent to them. That seems like a disincentive to me.
5. Pricing Model 1. Different states have different pricing models. Depending on your state (a list of which is not provided in the terms and conditions, but the per-state pricing model is listed on Progressive’s website), your pricing may be determined (a) when the policy begins, or (b) at the time the Snapshot is installed in the vehicle. The discount may also be removed if the Snapshot is not installed in a timely manner, resulting in a premium increase. Renewal of this type of pricing applies to each policy period (usually 6 months) based on the previous 12 months’ driving data, and the pricing may vary from period to period.
6. Pricing Model 2. The initial discount will be based on the first 30 days of driving data. After 75 days of driving a second driving score will be given, which will determine your discount going forward until (a) Progressive decides to collect more driving data, or (b) Progressive revises the discount factors. After the second driving discount has been established, you will be notified that you need to return the device, postage paid by Progressive.
7. Premature Removal or Disconnection. If the Snapshot device is disconnected prematurely or if a pattern of disconnections suggests that the driving data collected may not be representative of actual driving, the second discount determination may be affected or revoked altogether.
That’s pretty much all that is of note in the Snapshot terms and conditions. If you have any questions about my analysis, please let me know in the comments.
About Graham Martin
Graham Martin is a solo practitioner focusing on Contract law (including drafting, review, and litigation). He operates Martin Legal Services, LLC in the Minneapolis-St. Paul area.
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That was a very good analysis of the terms & conditions of the Progressive Snapshot program.
I’m researching this program further, and it may be there is only a slight discount for customers also getting the pay in full discount, or EFT discount.
– Robert