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Connecticut Drivers Can Now Save Big Bucks Based on How They Drive as Progressive Launches One-of-a-Kind Car Insurance Program

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 Connecticut drivers who purchase policies directly from Progressive online or by phone.

“MyRate is designed for safe drivers,” said Richard Hutchinson, Progressive’s MyRate general manager. “It’s for people who drive fewer miles than average, at low-risk times of day and 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.”

MyRate uses Progressive’s patented technology to put consumers in control of their auto insurance rates. Drivers who choose to sign up for MyRate receive a device that plugs into a port in their car and measures 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 Connecticut customers get an immediate first-term discount of up to 10 percent when they sign up for MyRate and, to cover the cost of the device and data transmission, a $30 technology expense is added to their premium for each policy term they’re enrolled in the program. When they renew their policy, they could save as much as 25 percent or more, or be charged up to 9 percent more, based on their driving habits.

Drivers will be able to see whether they’re on track for a discount or an increase by reviewing their driving data at anytime by logging in to their policy on progressive.com. They can see how their driving habits are affecting their rate, and, if they choose, make behavioral changes that could lead to savings.

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 also has a registered service mark for Pay As You Drive®.