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SnapShot Goes to Delaware and Sets Pace for Insurance Discount Programs Expansion

April 24, 2012

SnapShot, the palm-sized, in-car data recorder has expanded to Delaware. The insurance discount program helps save a motorist’s money by recording their habits while driving. The program records distances driven and other driving habits such as speeding and abrupt stops. This data can help policyholders shape coverage that meets a motorist’s needs.

The data reports can also be checked online. Delaware now joins the majority of states that have usage-based coverage. Technology-driven data, according to Online Auto Insurance, is having a growing hold on many states and only a few states remain to implement these types of coverage.

The SnapShot program is used in 40 states and with an estimated 500,000 customers, the company holds the most widely-used program of its kind. The program recently expanded to Alabama, New Mexico and North Dakota. It is yet to be available to states like California, Washington and North Carolina where pay-as-you-drive programs that don’t have discounts are widely used.

With customer satisfaction moving the demand for programs like SnapShot which rely on data-driven technologies that are considered more accurate, it is just a matter of time before states like California adopt these programs as opposed to self-reporting methods.

According to a press release from DriveFactor, a company that provides data-capturing ‘vehicle telematics’ devices, “Insurers such as Progressive, Allstate and State Farm are expanding their usage-based programs to accommodate the positive consumer response, and other insurers in the U.S. and abroad are rapidly adopting technology.”

However, even government entities are using hard data to improve efficiency. The North Carolina’s Program Evaluation Division has implemented telematics for its fleet vehicles where the Fleet Management Division is expected to strengthen accountability and bolster management through accurate frequency of use and vehicle mileage data.

A five-year plan was also proposed in 2009 that seeks to implement a ‘Vehicle Miles of Travel (VMT)’ system that measures and determines state charges and fees. This could eventually replace the fuel taxes in funding transportation systems. These systems can boost productivity, address driver safety and ensure fleets run more efficiently.






Edited by Jennifer Russell

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