Innovation auto insurance discount plan

ROSEVILLE, Minn.--(BUSINESS WIRE)--Aug. 9, 2004--Drive less, pay less--that's the simple concept behind TripSense(SM), a first of its kind usage-based auto insurance discount pilot program to be offered to 5,000 drivers in Minnesota beginning August 16 by the Progressive group of insurance companies, the third largest provider of auto insurance in the U.S. Program participants are eligible to receive a discount of up to 25 percent depending on how much, how fast and when they drive. Drivers interested in the program can contact the company at tripsense.progressive.com.



Customers who register a vehicle in the TripSense pilot program plug a data-logging device into a port in their car. The device, called TripSensor(TM), collects information about the vehicle's use, including how much, how fast and when they drive. Participants in the TripSense program will receive a five percent discount on the six-month premium for each registered vehicle. In subsequent policy periods, TripSense customers earn a five percent discount if they choose to upload their driving data to Progressive. Customers can also receive up to 20 percent more in discounts based on how much, how fast and when they drive. Sharing driving data with Progressive is always optional, but necessary to earn a discount in future policy terms.



Progressive tested this usage-based insurance discount program in Minnesota in early 2004 when it offered 250 drivers $25 to plug a data logging device into their vehicles to collect information for 30 days, upload their data to Progressive and complete a survey about the experience. In the test, a discount on future policy periods was not offered, but had it been, the average member of the test group would have been eligible for a 7.5 percent discount on the registered vehicle in the next policy period.