Minnesotans Leaving Money on the Table When it Comes to Auto Insurance; Exclusive Discount Program Gives Minnesotans Opportunity to Save Big On Auto Insurance

ROSEVILLE, Minn.--May 9, 2005--More than three out of four Minnesota drivers (78 percent) surveyed recently say they want more control over the cost of their auto insurance. The survey also finds that the majority (60 percent) say they would participate in a usage-based discount program that could save them up to 25 percent on the cost of auto insurance.

The solution? A Minnesota-only, usage-based discount program that gives drivers control over the cost of auto insurance.

In August 2004, The Progressive Direct Group of Insurance Companies introduced TripSense(SM), a first of its kind usage-based auto insurance discount program based on a simple concept: drive less, pay less. Available to the first 5,000 Minnesota drivers, the program has attracted more than 3,000 participants so far who are saving an average of 12 to 15 percent on the cost of their auto insurance.

According to the National Association of Insurance Commissioners, Minnesotans' auto insurance premiums average about $800 a year. With TripSense, drivers could save as much as $96 to $120 annually.

Progressive wants people to know they can still sign up for the TripSense program, and they've made it even easier to get involved. In addition to registering online at tripsense.progressive.com, drivers can also sign up by calling 1-800-PROGRESSIVE 24 hours a day, seven days a week.

"Our survey of more than 1,000 Minnesota drivers found that there are still many people who say they want the benefits available from a program like TripSense," said Pat O'Malley, director of Progressive's product development and pricing in Minnesota. "While the response to the program has been strong, there are still savings to be had and time to sign up."

"At first I wasn't sure how much I could save but I was intrigued by the idea of having control over reducing the cost of my car insurance," said Valerie Erickson, of Fridley, Minn., who signed up for the program in 2004. "I couldn't be happier - not only did I save about 20 percent on the cost of insurance, but I learned a lot about my driving habits. I consider myself a safe driver and apparently Progressive does, too. It's great to be rewarded for that."

Depending on the number of miles driven, speed and the time of day when trips are taken, TripSense customers are eligible to receive a discount of up to 25 percent.

Here's how the TripSense discount works:

Drivers plug in a free, matchbox-sized device into their vehicle's On Board Diagnostic (OBDII) port found near their car's steering column. The device collects mileage, speed and the time when the vehicle is driven and this information is used to calculate the renewal discount the customer can receive. Toward the end of each policy period, TripSense customers download their driving data to their personal computer where they can view the information to better understand the discounts they have earned. Once their data has been uploaded, customers can use a secure Web site to examine trip details, review graphs of their driving and even compare their driving to others. There's even an interactive discount calculator that allows customers to model their driving to determine the affect on their discount. All participants receive a five percent discount just for signing up. Customers who choose to upload their data to Progressive can earn a total discount of up to 25 percent when they renew their policy.

The Progressive Group of Insurance Companies, in business since 1937, ranks third in the nation for auto insurance based on premiums written and provides drivers with competitive rates and 24/7 in-person and online service. Progressive companies under the Progressive Direct(SM) brand offer consumers insurance by phone at 1-800-PROGRESSIVE and online at progressive.com. Progressive Direct offers consumers conveniences that help make car insurance easier, including comparison rates of other big name insurance companies and the ability to shop for, buy and manage their policies by phone or online, 24/7. The Common Shares of The Progressive Corporation, the holding company, are publicly traded at NYSE:PGR. More information can be found at progressive.com.

Pat O'Malley, product manager, is available for interview.