Progressive, one of the country’s leading insurance companies recently launched its latest program which targets less-risky drivers and cars. The new service, called MyRate, is a behavior-based insurance program being offered in Connecticut.
The new product gives drivers the chance to avail of special rates based on how they drive, when they usually drive, and how much they take their cars out for a spin. However, the new program is available only to Connecticut drivers and car owners who purchase it from the internet or through the phone.
By giving clients the freedom to affect and alter their premium rates, the insurance giant claims that customers can actually aim for a lower premium rate.
When a client signs up for the program, a small device is attached into a specific port in the car. The device then tracks how, how much and when the car is on the move. Drivers who take their cars on the road less often and at less dangerous times of the day can eventually receive lower rates.
Richard Hutchinson, Progressive’s MyRate general manager, says that the program is designed for safe drivers. He adds, “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.”
Progressive also says that clients can choose which of their cars to enroll in the program. This would mean that a client with two or more cars can register one of their cars in the program and still retain another car’s separate insurance policy. By doing so, drivers and car owners can choose to use cars not enrolled in the program during more risky trips and times of the day.
First time Connecticut clients can avail of an instant 10 percent discount when they enroll in the said program. However, Progressive charges $30 for every vehicle registered in the MyRate insurance program.
By simply logging on the Progressive’s website, the insurance giant claims that drivers and car owners can monitor their progress and insurance rates. Customers will also be able to keep track of their driving habits which affect their premium rates directly. The company says that this can help drivers change some driving behaviors.
Upon renewal of the policy, drivers and car owners can immediately find out if they can avail of a 25 percent discount or a 9 percent hike, based on their driving behavior.
