Progressive prepares countrywide launch of MyRate℠, an optional behavior-based insurance program

MAYFIELD VILLAGE, Ohio – June 27, 2008 – 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 or train station 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.

“MyRate is designed primarily for lower-risk drivers who are consistent and safe,” said Richard Hutchinson, Progressive’s MyRate general manager. “They drive at low risk times of day and they 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 customers can earn a first term discount of up to 10 percent just for signing up. Then, depending on the program features in their particular state, their rate may go up or down at renewal depending on their driving habits. The impact on the rate could be anywhere from a 60 percent discount to a 9 percent surcharge. In some states, there will also be a technology expense for the cost of the device and data transmission.

“Because MyRate could lead to a higher rate for drivers in some states, we want people to know that the program is not right for everyone,” Hutchinson said. “The good news is that a customer who has signed up for MyRate can review their driving data in a secure part of, see how their habits are affecting their rate, and, if they choose, make behavioral changes that can lead to real savings.”

Progressive will begin offering MyRate starting with Alabama in late June. A national rollout of the program will continue, pending regulatory approval, throughout 2008 and 2009. It will be available to customers who buy their policies directly or through independent insurance agents.

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®, became available in Minnesota, Michigan and Oregon beginning in 2004. The states with TripSense will eventually be converted to the MyRate program.

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 DriveSM and Pay How You DriveSM.

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