Auto Insurer Progressive Reduces Rates by Five Percent

15 October 1998
Auto Insurer Progressive Reduces Rates by Five Percent
    TAMPA, Fla., Oct. 15 -- Progressive , the state's
third largest auto insurer, Thursday announced a five percent rate decrease in
the Tampa Bay area.  The reduction was announced by Brian Dwyer, Progressive's
West Florida General Manager.
    In announcing the cut, Dwyer credited the company's 24-hour-a-day,
7-day-a-week, Immediate Response(R) claims service as well as favorable
accident trends as the leading reasons why the company was dropping rates.
    "Claims costs are the single biggest expense we have.  Controlling them is
the key to lower rates.  Being available 24 hours a day, 7 days a week to
begin the claims settlement process helps customers get their life back in
order again quickly," said Dwyer.  "And it also helps hold down our claims
costs because we are involved in the process from the start.  We get the
customer's car in and out of the shop quickly, avoiding costly delays like
additional towing, storage, and rental car expenses.  The speedy response also
reduces the potential for fraudulent activities -- another cost saving
benefit."
    Dwyer also noted that driver habits and safety devices have contributed to
less costly crashes.  "The population is aging and that means more mature
drivers who are, generally, safer drivers.  Vehicles are more crashworthy and
have improved safety features.  These all impact claims costs, which, in turn,
influences rates."
    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 2,500 Florida Independent
Agents, call 800-AUTO-PRO(R) (800-288-6776), or visit the company's web site,
http://www.progressive.com.

    In business since 1937, Progressive provides consumers across the United
States and in Canada with competitively priced automobile insurance and
24-hour-a-day service.  Progressive companies writing auto insurance are
related A++ by 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 .  More information about the company can be found on the
World Wide Web at http://www.progressive.com.