Optional car insurance program, MyRate, lets lower risk drivers pay less
Progressive, an auto insurance group, has introduced an optional car insurance program that offers lower rates on vehicles that are driven in less risky ways.
The company said that the behavior-based insurance program, MyRate, gives drivers a customised rate based on how, how much, and when their car is driven. It is now available to Rhode Island drivers who purchase policies directly from Progressive online or by phone, or through its independent insurance agents in the state.
According to Progressive, MyRate uses its patented technology to put consumers in control of their auto insurance rates. Drivers who sign up for MyRate, will receive a device to plugs into a port in their car and measures 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.
Rhode Island drivers who purchase the policy could save as much as 25% or more on their renewal rate or be charged up to 9% more based on their driving habits. A $30 technology expense of the device and data transmission is added to their premium for each policy term. Drivers will be able to see whether they are on track for a discount or an increase, by reviewing their driving data on company’s website, the company said.
Richard Hutchinson, general manager of MyRate at Progressive, said: “MyRate is designed for safe drivers. 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.”