Jun 08, 2009 08:00 ET
Colorado Drivers Can Now Save Big Bucks Based on How They Drive as Progressive Launches One-of-a-Kind Car Insurance Program
Optional Behavior-Based Car Insurance, MyRateSM,
Lets Lower Risk Drivers Pay Less
MAYFIELD VILLAGE, Ohio --(Business Wire)-- Jun 08, 2009
Are you the poster child for safe driving, always leaving plenty of
space between you and the car ahead? Or a business traveler who parks
your car at the airport several days a week? Or maybe you have a car
that you only take out for a spin on warm summer days. If so, your car
is probably less likely to be involved in a crash, so shouldn’t you pay
less for car
insurance?
Progressive thinks so, and that’s why it’s introducing an optional car
insurance program that offers lower rates on vehicles that are driven in
less risky ways. The behavior-based insurance program, called MyRate,
gives drivers a customized rate based on how, how much, and when their
car is driven. It is now available to Colorado drivers who purchase
polices from Progressive through its more than 1,000 independent
insurance agents in the state. It will also be available to customers
who purchase polices directly from Progressive online or by phone in
mid-August.
“MyRate is designed for consistent and safe drivers,” said Richard
Hutchinson, Progressive’s MyRate general manager. “It’s for people who
drive at low risk times of day and who keep alert for others on the
road. They don’t make fast lane changes or follow too closely behind
other drivers so they don’t have to over-react or slam on the brakes.”
MyRate uses Progressive’s patented technology to put consumers in
control of their auto insurance rates. Drivers who choose to sign up for
MyRate receive a device that plugs into a port in their car and measures
how, how much and when the car is being driven. Cars driven less often,
in less risky ways, and at less risky times of day can receive a lower
premium.
Drivers with more than one car can select which, if any, of their
vehicles to enroll in MyRate. For example, a person with a second car
that isn’t driven that often may enroll that car in MyRate but may
decline to enroll their other vehicle if it is driven much more
frequently or during higher risk times of day.
New Colorado customers get an immediate first-term discount of up to 10
percent when they sign up for MyRate and, to cover the cost of the
device and data transmission, a $30 technology expense is added to their
premium for each policy term that they’re enrolled in the program. When
they renew their policy, they could save as much as 25 percent or more,
or be charged up to 9 percent more, based on their driving habits.
Drivers will be able to see whether they’re on track for a discount or
an increase by reviewing their driving data at anytime by logging in to
their policy on progressive.com. They can see how their driving habits
are affecting their rate, and, if they choose, make behavioral changes
that could lead to savings.
Progressive has been an industry pioneer in understanding that how you
drive should affect what you pay. Its initial foray into usage-based
insurance started in 1999 with a program in Texas called Autograph. It
then piloted its next generation of usage-based insurance, TripSense®,
in Minnesota, Michigan and Oregon beginning in 2004. The new program,
MyRate, is now being rolled out countrywide, pending state regulatory
approval.
Progressive has received patents on its methods and systems of
implementing usage-based insurance and has licensed these methods and
systems to other companies. Progressive also has a registered service
mark for Pay As You Drive®.
About Progressive
The
Progressive Group of Insurance Companies, in business since 1937, is one
of the country’s largest auto insurance groups, the largest seller of
motorcycle policies, and a market leader in commercial auto insurance
based on premiums written.
Progressive is committed to becoming consumers’ #1 choice for auto
insurance by providing competitive rates and innovative products and
services that meet drivers’ needs throughout their lifetimes, including
superior online and in-person customer service, and best-in-class,
24-hour claims service, such as its concierge level of claims service
available at service centers located in major metropolitan areas
throughout the United States.
Progressive companies offer consumers choices in how to shop for, buy
and manage their auto insurance policies. Progressive offers its
products, including personal and commercial auto, motorcycle, boat and
recreational vehicle insurance, through more than 30,000 independent
insurance agencies throughout the U.S. and online and by phone directly
from the Company. Private passenger auto products and prices are
different when purchased directly from Progressive or through
independent agencies. To find an agent or to get a quote, go to http://www.progressive.com.
Progressive PR
Susan Rouser, 440-395-1788