Progressive Insurance is introducing its optional car insurance program in Maryland 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 Maryland drivers who purchase polices directly from Progressive online or by phone. It will be available through independent insurance agents beginning Sept. 26.
“MyRate is designed for consistent and safe drivers,” said Richard Hutchinson, Progressive’s MyRate general manager. “It’s for people who drive at low risk times of day and who 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.”
Drivers who choose to sign up for MyRate receive a small wireless device that plugs into a port in their car. The MyRate device allows Progressive to see 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 Maryland customers can earn a first-term discount of up to 10 percent just for signing up. Then, when they renew their policy, they could earn a discount of up to 25 percent or more based on their driving habits. There is also a $30 technology expense each policy period for the cost of the device and data transmission.
Progressive’s 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 has service marks pending on the terms Pay As You Drive and Pay How You Drive.
Source: Progressive
www.progressive.com
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