Tuesday, November 29, 2022

A business plan built on screening out bad risks

If you can find a way to signal that you are a safe driver, you should be able to get better rates.  Here is how Progressive screens out bad drivers:

You, the consumer, agree to allow Progressive to install a monitor that plugs into your car's onboard diagnostic system. Progressive then monitors how you drive: how far, how fast, how many hard brakes and so on. If Progressive likes what it sees, you can get your bill knocked down by as much as 30% after 30 days. Six months later, you mail the device back and have the opportunity to lock in the discount — permanently. If, on the other hand, Progressive puts you in the naughty category, sorry, no discount.

HT: Micah

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