Progressive’s Rate Sucker Campaign

You have probably seen it by now – Progressive’s campaign where “Rate Suckers” jump and attach themselves on the windshield of passing cars.

With this campaign Progressive wants to bring into focus a problem they think most customers don’t even know they have!

What is a Rate Sucker?

To a certain degree, insurance companies compare customers to other drivers with the same basic characteristics, like age, gender, and what car they drive. They also check driving records and credit reports. But the insurance company doesn’t really know if you are a good driver or not, or if you are a greater risk than anybody else. The company just makes assumptions based on general statistics.

A bad driver is a “Rate Sucker“. Rate suckers pay less than the risk they actually present, leaving the good drivers to pay more, just to cover the insurance company’s costs.

All Auto Insurance Companies Does This

This is nothing new. All insurances basically work the same way. They always have.

But are people aware of it? In a survey done by Progressive, 63 percent claim they didn’t know that other drivers and rate suckers actually affected their car insurance rates. Young drivers (up to 34) had the lowest awareness.

Snapshot device package by Progressive

This being said, Progressive wants to change this by introducing the Snapshot device. This will give good, defensive drivers a potential way to save money. According to Progressive, a premium can be reduced by as much as 30 percent based on real-time analysis of your driving habits. This is available under Progressive’s Pay As You Drive (PAYD) program (You can sign up participate in most states, except AK, CA, HI, IN, NC and TN).

What is the snapshot device? It is a little tool that records things like: How often you make hard brakes, how many miles you drive each day and how often you drive between midnight and 4 a.m. All are factors that may lower your premiums.

The snapshot device is compatible with most cars built after 1995 and fits right into a little port generally located below the steering wheel. Once you have installed the device you can track your habits and your projected savings online. After 30 days, any projected savings turns into actual savings.

What if it turns out that you aren’t such a good driver, after all? Well, using snapshot won’t increase your Progressive rate. Your premiums can only go down.

At least not as a result of this tracking.

Source: Progressive Auto Insurance