Progressive's MyRate Expands to Colorado
Last Friday, Progresive Insurance expanded their MyRate system into Colorado. The system, which was introduced in 2004 with a pilot program in Michigan, Minnesota and Oregon, and has since been expanded to nine other states, is planned for nationwide availability within three years.
MyRate uses a small device plugged into a port within the customer's vehicle to track the distance, time of day, and how a car is driven, but does not track specific locations, or monitor speed. The customer's insurance rate is then based on their real-time driving habits, and most end up saving money.
Richard Hutchinson, general manager for Progressive's MyRate program, says the company is, "… seeing that one out of four customers that are offered this system accept it and the majority of customers using it end up with discounts averaging between 10 and 15 percent."
Customers who enroll in MyRate must pay a $30 technology fee in order to use the device, but this is offset by a 10% discount for the first six months of their coverage. As well, drivers who either don't get enough of a discount, or end up with a surcharge because of their driving habits, can opt out of the program without any adverse response.
The MyRate system is not available on Progressive's website at this time. It must be purchased from independent insurance agents.
