Progressive: Lower rates if they can spy

How would you like to cut your car insurance bill by 25 percent to 30 percent? Sure, everyone would love that.

But this newest insurance discount comes with a catch that not all drivers would agree to.

Progressive's "Snapshot"

You may have seen Progressive's TV ads promising big discounts for safe driving.

One commercial, featuring a perky spokeswoman named Flo, says "are you a safe driver? Yes. Discount! Do you own a home? Yes. Discount! Are you gonna buy online? Yes. Discount!  Aren't discounts great? Yes!"

Now, Progressive is taking it further, offering drivers in Ohio, Kentucky, and 20 states a program called "Snapshot,"  that provides discounts up to 30 percent. (It is not yet available in Indiana or Florida).

The Catch

There's one catch. You have to let Progressive install a gadget under your dash to monitor and transmit your driving habits.

Company spokesman Richard Hutchinson told us, "This is a new approach to auto insurance. It allows you the consumer to share your driving to get a discount."

He says after the first 30 days, your rates will go down, as much as 30 percent,  if Snapshot finds you:

• Drive at reasonable speeds, without jackrabbit starts
• Avoid hard stops
• Don't drive late at night

Will Bad Driving Raise Your Rates?

Too much "big brother" for you? Don't worry: Hutchinson claims your rates won't go up if your driving is a bit more aggressive, or if you make too many hard stops.  You simply won't get the discount.

"It's only a discount." he said. "And its a purely voluntary program. So you don't have to do it if you don't want to."

In addtion, Progressive says it won't share the data unless required for an accident or legal case.

But Pennsylvania officials have raised privacy concerns, and as of July 15, Progressive had pulled the program from that state for now.

The Bottom Line

Progressive, however, says the program is already a success in many states. And it says 100,000 customers have signed up for it so far.

Click here to learn more about Snapshot, now available in 20 states.

So if you don't speed much, and don't mind your insurance company watching your driving, you may want to consider it, so you don't waste your money.

____________________

For More Don't Waste Your Money reports,

click here

Don't Waste Your Money (TM) is a registered Trademark of the E.W. Scripps Co.