---

Hail Victims Getting Fast Resolution To Auto Claims

22 May 1998

Minnesota Hail Victims Getting Fast Resolution To Auto Claims

           Auto Insurers' Quick Response Settles 70 Percent of Hail
                       Claims Within 72 Hours of Report

    MINNEAPOLIS, May 21 -- When hail strikes, you can bet there
will be lots of vehicles damaged.  When hail accompanied by more than 70 mile
an hour wind strikes during rush hour, when vehicles are either stuck in
traffic or still in open air parking lots at work, it can be an auto insurance
claims nightmare.  But not for some Twin City area motorists, like Gary Speese
of Bloomington, Minn. "I called my claim in to Progressive at 10 in the
morning on Monday the 20th and by 1:30, my claim was settled, I had a check in
my hand and my car was in the shop," said Speese.
     "The phones started ringing Friday night and since then, we haven't
stopped inspecting and settling claims," said Mike Capuzzi, Minnesota claims
manager, Progressive.
     By Wednesday the 20th, nearly 1,000 hail-related claims had been reported
to Progressive, one of the largest auto insurers in Minnesota.  The good news
is that, thanks to the company's in-person Immediate Response(R) claims
service, 70 percent of those claims were paid within 72 hours from the time
they were reported.
     In response to consumer demand for faster, more efficient claims handling
and resolution, Progressive has redefined the process.  Since the company's
introduction of its 24 hour a day, 7 day a week claims service in 1990,
policyholders have become accustomed to calling in their claims at any hour of
the day or night, and getting them settled right away.
     "When you pay for auto insurance, you're paying for a promise from the
company to be there when you need it," said Willy Graves, Claims Process
Leader, Progressive. "And you should have an expectation that the company will
get to work on your claim immediately and settle it within hours or days, not
weeks. That's Immediate Response."
     Progressive serves the auto insurance needs of nearly 90,000 Minnesotans
and operates three claims offices in the Twin Cities area (Arden Hills, Eagan
and Minnetonka).
     Here's how this claims service works:  Progressive policyholders are
issued a "Gold Card" with claims reporting information, including an 800
number that can be called from anywhere, 24 hours a day, 7 days a week.  When
a policyholder has a claim to report (like hail damage), he/she calls the 800
number and a Progressive claim representative gets to work on the claim
immediately, including inspecting any damaged vehicles. Progressive claim
representatives and policyholders meet when and where it is most convenient
for the customer and claim representatives inspect more than 50 percent of
damaged vehicles the same day the claim is reported, even in the face of
common logistical obstacles such as not being able to locate or contact other
parties involved in a claim. If coverage is in order and the claim
investigation is complete, the claim representative inspecting the damage can
issue a payment for the claim on the spot.
     To help local claim representatives respond to accident scenes quickly
and safely and to help identify Progressive representatives at accident
scenes, the company has put into place a fleet of more than 1,100 specially
marked and outfitted Immediate Response Vehicles (IRVs) to service
policyholders' needs.
     These vehicles are equipped with cellular phones and laptop computers to
give claim representatives on-line ability to make reports from remote
locations, and to gather additional resources (police, tow services, rental
cars, repair facilities).
     Settling claims fast also helps keep down the cost of auto insurance for
all policyholders by reducing expenses such as tow yard storage fees and
rental car coverages.  "We have to provide the lowest cost auto insurance to
all consumers," said Graves, "reducing costs associated with claims helps us
to keep down costs for everyone."
     Progressive offers Immediate Response claims service to the nearly 4
million consumers it serves throughout the U.S. and in Canada.
     In business since 1937, Progressive provides consumers throughout the
U.S. and in Canada with competitively priced automobile insurance and 24-hour,
in-person services. The company's products are available through more than
30,000 Independent Agents, the company's 1 800 AUTO PRO(R) service and on-line
at http://www.progressive.com .  Progressive companies writing business
consistently receive high ratings from A.M. Best, an independent firm that
rates the financial condition of auto insurers.
     The Progressive Corporation's stock is traded on the New York
Stock Exchange. More information about the company (including local claims
office locations) can be found on the World Wide Web at
http://www.progressive.com