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Third Rate Decrease in 16 Months for Progressive

18 June 1998

Third Rate Decrease in 16 Months for Progressive, State's Fifth Largest Auto Insurer

          Company Cites Competitive Market, Pro-Consumer Strategies

    LAS VEGAS, June 18 -- Progressive, now the state's fifth
largest auto insurer, is reducing its rates in Nevada for the third time in 16
months, Michele Strub-Heer, Progressive's Nevada General Manager, announced.
The latest decrease of an average 3 percent is effective June 22, 1998.
    The three consecutive rate decreases taken by the company since February
1997 represent a cumulative decrease of 10.6 percent, or average savings of
$83 per year for Progressive's Nevada policyholders.
    "Lower auto insurance rates are good for everyone and they've been made
possible by the competitive insurance market and fraud control initiatives
that Governor Miller, Commissioner Molasky-Arman and the legislature have
fostered," said Strub-Heer.
    Strub-Heer said: "The primary reason we've been able to lower our rates
consistently over time is our ability to lower our costs and pass those
savings immediately to consumers.  We've reduced our general expenses
significantly in the last two years.  And, our fast, fair claims service has
helped us realize significant reductions in our claims costs."
    The company's Immediate Response(R) claims service is available to
policyholders 24 hours a day, 7 days a week.  The company's claim
representatives today inspect 75 percent of all damaged vehicles within 24
hours of when the accident is reported.  Before Immediate Response, the
company measured claims response in terms of days, not hours.
    Strub-Heer said: "Getting out to help policyholders right away delights
them and lowers claim costs.  It also reduces the potential for fraudulent
activities.  This combination of great service and flexible and accurate
pricing adds up to excellent value for our customers.  This is why we are
growing so successfully in Nevada."
    In 1997, the company's Nevada business grew more than 35 percent, while
the rest of the private passenger auto insurance companies in the state grew
an average of about 9 percent.  This makes Progressive the fastest growing
major auto insurer in the state, and the fifth largest.
    Over the past five years, the company has sustained annualized growth of
33 percent in Texas while the rest of the industry grew 9 percent annually.
Auto insurance policies from Progressive are perhaps the most widely available
in the industry.  Consumers interested in becoming a Progressive policyholder
may contact one of Progressive's 250 Nevada Independent Agents, call
1-800-AUTO-PRO(R) or visit the company's Web Site (http://www.progressive.com).
    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 and is the nation's largest writer of automobile insurance
through Independent Agents.  The Progressive companies that write auto
insurance consistently earn the highest ratings from A.M. Best, the
independent company that rates the financial conditions of insurance
companies.  The Progressive Corporation's stock is traded on the New York
Stock Exchange .