Progressive Offers Program to New Jersey Drivers

Progressive is 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 will be available starting Aug. 8 to New Jersey drivers who purchase polices online, by phone, or through independent agents.

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 Garden State customers can earn a first-term discount of up to 10 percent just for signing up. Then, when they renew their policy, their rate could decrease by up to 60 percent or increase by up to 9 percent based on their driving habits.

Progressive's 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. 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.