Snapshot program may help lower monthly insurance payments

Snapshot program may help lower monthly insurance paymentsWhen you're paying back bad credit auto loans, you likely can't afford high monthly payments for any of your car-related expenses. Luckily, there is a way to cut costs, as a new program could help drivers lower their insurance premiums by up to $150 annually.

According to USA Today, car insurance firm Progressive recently unveiled their Snapshot program, which gives drivers a small device to place in their cars that will essentially monitor their driving habits. Because so many factors go into deciding monthly premiums, the company wants to have a more accurate way to determine a customer's risk, which could help benefit the driver.

The Snapshot device will track what time of day the car is in use, the distance of each trip, how hard one brakes and more, allowing users to receive up to a 30 percent discount on their premium.

While the program could help instill safer driving habits, those who are not the best drivers shouldn't worry. Progressive uses the information only to determine discounts, "not punitively," reports the news source.

When you are able to afford your monthly bills and make ends meet, you are on the road to a happy financial standing and a better FICO score.