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Progressive general manager Richard Hutchinson on the company's new Snapshot discount insurance program.
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Well progressives snapshot user based insurance program has compared to having your Egypt in the carts -- not that's -- But with 70% of snapshot users receiving a discount are more people willing to give us give it a shot.
Joining us now.
-- progress and general manager of user based insurance Richard Hutchinson Richard thank you so much for joining us.
Thank you for having me I'm so it's 70% are getting a discount is not a money -- for you could you'd have to really increase volume in order to make up for that.
Well what is that the majority of drivers are subsidizing a smaller group of drivers who -- higher risk.
And as long as we -- tracked through this kind of program.
-- for risk customers will do very well.
And now also with the chance for -- -- the single biggest discount the auto insurance business still stay longer to.
Well I and I understand that you just recently did a study where you were tracking drivers in their car and you found that drivers.
That engage in high risk driving behavior.
Cost approximately 2.5.
Times more than the low risk drivers.
That's absolutely right if you take the same drivers in terms of the insurance industry tradition and he looks at around.
And you put a device in their car that they voluntarily allow you to do that.
You'll see that the safest drivers are two and a half times safer.
Then they highest.
Are driving Sinatra.
I'm very logical but what we're comparing it to -- -- saying that normally you would assign someone's insurance rate.
Based -- You know where they land their gender or their other factors right what kind of car they drive that these this is the old -- that the industry used to decide.
How much you should charge someone -- -- saying that this is the single best predictor of course is actually getting in the car and figuring out how people drive.
So if -- if the riskier drivers were sort -- Costing the most and and that that cost is being born by the rest the drivers I mean that's sort of what insurance is all about that's a whole premise of insurance are you then gonna drive off.
Those riskier drivers to other insurance companies where they would get a better rate news is that the outcome you want.
Well I think -- and when this will do -- -- attract drivers who are look conferred.
An opportunity lower the costs there auto insurance and we'll get more safer drivers you know.
A large population of that and the reality is they -- we can all -- -- driving so this this type of new technology is gonna make us more sensitive to how we drive because it's gonna affect our price.
Yet we're looking at right now on the street we were looking at one of the devices that does the car -- tracks how you're driving.
And a lot of people of course are worried about volunteering to have Big Brother.
In the car with them I understand this device is not a GPS right it just sort of time.
Measures how quickly your stepping on the gas in the break -- sort of jerking motions and the kind of things that would make you an unsafe driver could use later.
You know I don't know I'm trying to think why wouldn't want this like if I -- -- later by another driver could date.
Demand to have that box out of my car and then use all the data against -- -- -- future ploy -- earth is there any -- around this.
It would require judge to release -- but the data coming out a snapshot -- There isn't much there other than your your speed per second now what time a day -- operating -- doesn't know.
Who's driving and doesn't know where you are as you said you know there's no GPS so.
You know most of the examples are people get nervous generally around location based tracking in this device does not have that at all.
You know if -- devices built purely for her.
You know rating auto insurance so it looks that you know -- -- operating uniter during the day are you doing a lot of hard -- -- You know how many miles you're driving so it's really just about OK you know trying to figure out safer drivers.
Sure -- can't pinpoint who's driving the Carson and you don't care which drivers operating the car you're only ensuring the cars you just care how the car is driven.
That's exactly right it's you know it's it's more the vehicle -- -- okay.
Richard Hatch is -- thanks so much we appreciate your time it's.
