New Jersey Drivers Now Have Two New Choices for Auto Insurance: Drive(R) Insurance From Progressive and Progressive Direct(SM)

TRENTON, N.J.--Oct. 3, 2005--

State and Company Officials Announce the Arrival of Two Top-10 Auto Insurance Brands to the Garden State:

-- Drive Insurance From Progressive available only through independent agents

-- Progressive Direct available online and over the phone

Representatives from The Drive Group of Progressive Insurance Companies and The Progressive Direct Group of Insurance Companies today joined New Jersey state officials to announce that the two top-10 brands of auto insurance are now available to New Jersey drivers.

"Our efforts to create an environment where companies compete for drivers and consumers have real choice are paying off," said Acting Governor Richard J. Codey. "We couldn't be happier that two companies of this caliber are choosing to do business in New Jersey."

The Drive Insurance from Progressive brand is for consumers who want the personal service and counsel of a local independent agent. The Progressive Direct brand of auto insurance is geared to consumers who want the ease and convenience of shopping online and over the phone 24/7 and getting comparison rates of other top companies. Drivers who choose either brand have access to great rates, superior customer service and innovative claims service.

"Independent agents throughout the country sell Drive Insurance more often than any other brand and we're so glad we can now invite agents to offer it to their New Jersey customers," said Mike Esposito, New Jersey product manager, Drive Insurance from Progressive. "Independent agents sell a variety of companies' products, so they're able to put together insurance packages for their customers that feature the best-of-breed companies. For auto, that means a package featuring Drive Insurance." There are now approximately 100 agencies throughout the state authorized to sell Drive Insurance. Consumers can go to driveinsurance.com to find an agent near them. Agents who are interested in selling Drive Insurance can visit driveinsurance.com and click on About Drive for more information.

New Jersey Progressive Direct Product Manager Jeff Briglia said: "We're excited to show New Jersey drivers how easy it can be to shop for auto insurance, including by using our comparison rating service where consumers can see an up-to-the-minute display of rates that other drivers who share similar characteristics with them are getting, both from Progressive Direct and other top companies. We think New Jersey consumers who visit our award-winning Web site may find shopping for and managing their auto insurance is easier than they ever thought possible." Right now New Jersey consumers can shop online at progressivedirect.com, but Briglia said he expects drivers to also be able to shop by phone at 1-800-PROGRESSIVE beginning early next year.

Both Esposito and Briglia praised the State of New Jersey, the New Jersey Department of Banking and Insurance and state lawmakers for enacting reforms that have created a more competitive business environment in the state. In the past, the Progressive companies had declined to write insurance in the state due to what they perceived to be a difficult legal and regulatory environment.

"For too long New Jersey drivers had to sit back and watch while insurance companies offered their products and services to people in other states but not to people here," said Donald Bryan, acting commissioner, New Jersey Department of Banking and Insurance. "I think we see today that those days are long gone. The fact that companies want to do business here means more choice and more potential savings for New Jersey drivers."

About Drive Insurance from Progressive and Progressive Direct

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. The Drive Group of Progressive Insurance Companies offer insurance through more than 30,000 independent insurance agencies and market their products and services under the Drive Insurance from Progressive brand. The Progressive Direct Group of Insurance Companies offer insurance directly (by phone at 1-800-PROGRESSIVE and online at progressivedirect.com) and market their products and services under the Progressive Direct brand. The Common Shares of the Progressive Corporation, the Mayfield Village, Ohio-based holding company, are publicly traded at NYSE:PGR. More information can be found at progressive.com.

Mike Esposito, New Jersey product manager, Drive Insurance from Progressive, and Jeff Briglia, New Jersey product manager, Progressive Direct, are available for interview.