Insurance Company Ships GPS Tracking Devices to Customers
22 Jul 2014Progressive Insurance encourages good driving and offers discounts to customers that use GPS tracking devices on their vehicles.
Tracking programs by major insurance companies in the United States has been a long time coming, but many drivers were resistant to the idea of their driving and vehicles being tracked. Until now. Progressive Corp. has begun shipping devices enabled with GPS tracking technology to customers that volunteer to be tracked in exchange for discounts on their vehicle insurance. It is their way of rewarding and encouraging safe driving. They are also helpful because they are an anti-theft device, which insurance companies love.
These insurance programs are being called usage-based programs, or telematics, and more policyholders are coming around to the idea of being tracked. The GPS trackers will be placed in their vehicle and keep track of where they are located.
According to Progressive project management office leader Steven Broz, they began shipping to the devices to policyholders in April of this year. Months previous, it was Progressive employees that were testing the devices in their own vehicles.
Progressive, along with many other insurance companies, first began introducing this idea several years ago. At the time, customers were concerned about the invasion of privacy this entailed, as the trackers could tell where their vehicle was at all times. Times have changed and now that most people already have trackers on their phones, they seem more open to the idea of tracking their vehicle, especially with the benefit of paying a lower insurance premium for safe driving practices.
The Ohio-based insurance company is calling the program Snapshot and believes their customers are ready for the program. Many volunteers have agreed to have their vehicles tracked by the GPS-enabled devices. Right now, the devices are mainly tracking their vehicle’s location, but they are hoping through the continued testing phase, the technology can advance to truly seeing how their policyholders drive and offering more discounts for safe driving.
Other insurance companies are also jumping on the bandwagon, including Allstate, who previously released a new tracking app for mobile phones. The app is called Drivewise and looks at the driving habits of the policyholder and location, offering discounts for good driving habits.
More research is still being done by Progressive to look into updates for the program in the future. With customers being more comfortable sharing personal and private information, it is no surprise that they now have volunteers for this program. Not only will they get discounts, but insurance companies are hoping by being tracked, their policyholders are encouraged to drive safely while they are being tracked. This not only benefits them, but everyone else on the road at the same time. Their hope is that more people volunteer for the added benefits of the program.
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