Alabama 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, MyRate(SM), Lets Lower Risk
Drivers Pay Less
MAYFIELD VILLAGE, Ohio--(Business Wire)--
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 Alabama drivers
who purchase polices online, by phone, or through independent agents.
"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."
Drivers who choose to sign up for MyRate receive a small wireless
device that plugs into a port in their car. The MyRate device allows
Progressive to see 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 Alabama customers can earn a first-term discount of up to 10
percent just for signing up. Then, when they renew their policy, they
could earn up to a 40 percent discount based on their driving habits.
There is also a $30 technology expense each policy period for the cost
of the device and data transmission.
"This is a brand new way to price car insurance that allows
Alabama drivers to pay based on how they actually drive," said
Hutchinson. "We want to thank the Alabama Department of Insurance for
making it possible for us to offer this unique car insurance option to
drivers here."
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. Its next generation of usage-based insurance, TripSense(R),
became available in Minnesota, Michigan and Oregon beginning in 2004.
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 has service marks pending on
the terms Pay As You Drive(SM) and Pay How You Drive(SM).
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 and personal watercraft 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 products that meet
drivers' needs throughout their lifetimes, superior online and
in-person customer service, and best-in-class, 24-hour claims service,
including 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
www.progressive.com.
Progressive PR
Leah Knapp, 440-395-9928
Copyright Business Wire 2008
