Company offers policy based on driving habits

People whose odometer doesn't tick up much may be eligible for reduced rates on their auto insurance.

Progressive Insurance offers up to a 30 percent discount on premiums to drivers who don't slam on their brakes, drive late at night, or accumulate a lot of miles.

This is a different method of determining auto insurance rates, which are usually determined by traffic violations and other factors.

Consumers interested in the the "Snapshot Discount" must place a small electronic device in their car. The device is designed to monitor vehicle speed and usage. After a month, Progressive reviews the results to determine a policy rate. Six months later, the plan is reviewed again and the electronic device can be returned to the company.

Obtaining a car insurance quote based on driving habits stands to help many people lower their rates. This may be especially true for those who have poor credit scores. Some states, such as Michigan, have determined that it's completely fair for insurance companies to use such information when determining prices, the Detroit Free Press reported earlier this month.