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Progressive Reduces Auto Insurance Rates in Indiana by 8%

16 December 1998

Progressive Reduces Auto Insurance Rates in Indiana by Eight Percent

 Rate decrease marks the fourth rate reduction in three years as Progressive
           delivers on its promise to keep costs down for consumers

    INDIANAPOLIS, Dec. 16 -- Progressive , one of
the state's largest auto insurers, is reducing its rates in Indiana by an
average of eight percent, announced Richard Hutchinson, Progressive's
general manager for Indiana.  The latest decrease, effective today, is the
fourth rate reduction for Progressive's Indiana policyholders in three
years.
    Hutchinson credits the decrease in large part to lower claims costs and
the company's Immediate Response(R) claims service.  "Controlling claims costs
is the key to lowering rates.  We've been able to lower our costs, and we're
pleased to pass these savings on to consumers for the fourth time in three
years," said Hutchinson.
    One of the ways the company is able to reduce its costs is by providing
its policyholders with Immediate Response(R) claims service.  The service,
delivered in-person, 24 hours a day, 7 days a week in 25 Immediate Response
Vehicles throughout Indiana, ensures the company's policyholders fast, fair
claims settlement.
    "Settling claims fast lets people get their cars in to and out of the shop
faster.  This helps the policyholder get back on with his or her life
quickly, and directly reduces our expenses associated with rental cars and
storage fees, which helps us lower auto insurance rates for all of our
customers," said Hutchinson.
    Progressive is one of Indiana's fastest-growing auto insurers.  In
addition to auto insurance, Progressive offers coverage for motorcycles,
recreational vehicles, snowmobiles, personal watercraft, boats, travel
trailers and commercial vehicles.  Progressive meets the needs of more than
70,000 Indiana policyholders through nine claims offices and approximately 81
employees throughout the state.  Progressive quotes and policies are available
to consumers by calling 1 800 AUTO PRO(R), through the Internet
(progressive.com), and through more than 1,100 Indiana Independent Agents.  In
Indiana, Progressive is one of the two largest writers of auto insurance
through Independent Agents.
    Recognizing that no one auto insurance company will always have the best
rates for every driver, Progressive offers consumers an easy, hassle-free way
to compare auto insurance rates.  On the Internet (progressive.com) over the
phone (by calling 1 800 AUTO PRO(R)) or by mail, consumers can receive a quote
on their auto insurance from Progressive, and comparison rates for up to three
other leading insurers, including State Farm and Allstate.  The service is
free and there is no obligation to buy.
    In business since 1937, Progressive provides consumers throughout the U.S.
and in Canada with competitively priced automobile insurance and 24-hour
services delivered through the phone, Internet, and more than 30,000
Independent Agents throughout the country, making it the nation's largest
writer of auto insurance through Independent Agents.  Progressive companies
writing auto insurance consistently receive the highest ratings available from
A.M. Best, the independent company that rates the financial conditions of
insurance companies.  Progressive is a "Proud Sponsor of the NFL," and the
title sponsor of the Super Bowl Halftime Show at Super Bowls XXXIII and XXXIV.
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 progressive.com.