Turning everyday driving into extra savings
The provided hardware plugs into your car's onboard diagnostic port located under your steering column to capture data on your real-world driving habits. If you had to make any sudden stops, the number of miles you drove on the car for the day/week/month, and how often you were driving during high accident times are captured and then periodically uploaded using a cellular module on AT&T’s network for analysis and viewing via an account dashboard. The snapshot device does not capture any location data (no GPS on-board) and doesn't measure or monitor those rate occassions you were exceeding the designated speed limit, but these things could technically be calculated using the device's cellular chip.
If you choose to install and drive around with the device the company promises to give you "a personalized rate based on your driving. The better you drive, the more you can save, up to an extra 30 percent off our rate." After six months, the kit is returned and Progressive will lock in a rate based on an overall risk profile they have generated.
The service has kicked off a lively debate with the inevitable consipiracy theories and Big Brother references, but the company claims more than 900,000 people have already installed the device in their cars.
More specifics can be found at: Progressive.com/auto/snapshot.aspx or you can check out how they are promoting the device and it's benefits in the television commercial below.