Maryland Drivers Can Now Save Big Bucks Based on How They Drive

MAYFIELD VILLAGE, Ohio--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. It is now available to Maryland drivers who purchase polices directly from Progressive online or by phone. It will be available through independent insurance agents beginning Sept. 26.

“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 Maryland 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 a discount of up to 25 percent or more 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 Maryland drivers to pay based on how they actually drive,” said Hutchinson. “Customers can access their driving data on a secure, password protected Web site and get an up-to-date view of their driving habits and how those habits are affecting their rate. Customers who don’t like what they see can modify their driving behaviors in ways that can lead to a discount, such as driving more defensively, driving less, and driving at less risky times of day.”

“Governor O’Malley and I remain committed to finding affordable ways for Maryland citizens to meet their legal obligation of maintaining car insurance and still be able to pay for other necessities,” said Ralph S. Tyler, Maryland insurance commissioner. “Pay-as-you-drive insurance is one option Maryland drivers can now consider to help get the most for their hard-earned dollars.”

“I’ve advocated finding ways to lower car insurance rates for years, and now the opportunity for real savings is here,” said Sen. Lisa A. Gladden. “I’m excited that Progressive chose our state as one of the first in the country to offer their innovative product.”

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 has service marks pending on the terms Pay As You Drive^SM and Pay How You Drive^SM.