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Progressive Launches Pay As You Drive Program in South Carolina

The My Rate program postpones the customer costs associated with telemetry devices and gives drivers a way to monitor their driving behavior in order to modify their habits in a way that will secure them a better rate upon renewal.

Progressive Insurance (Mayfield, Ohio) has announced availability of its MyRate insurance program, which uses the carrier's patented telematics-based technology, to auto insurance customers in South Carolina. Progressive describes MyRate as a behavior-based insurance program that gives drivers a customized rate based on how, how much and when their car is driven.

"MyRate is designed for safe drivers," comments 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."

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. To cover the cost of the device and data transmission, Progressive will add a $30 technology expense to the customer's premium for each policy term that the customer is enrolled in the program. No technology expense is charged during the first term a driver is enrolled in the program, according to a Progressive press release. MyRate customers could save more than 25 percent on their renewal rate, based on their driving behavior.

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, the Progressive source relates.

Drivers will be able to see whether they're on track for a discount by reviewing their driving data at anytime by logging in to their policy on, the Progressive source says. They can see how their driving habits are affecting their rate, and, if they choose, make behavioral changes that could lead to savings.

Anthony O'Donnell has covered technology in the insurance industry since 2000, when he joined the editorial staff of Insurance & Technology. As an editor and reporter for I&T and the InformationWeek Financial Services of TechWeb he has written on all areas of information ... View Full Bio

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