Auto Insurance Gets Even Easier

MAYFIELD VILLAGE, Ohio--(BUSINESS WIRE)--Feb. 17, 2005--The Progressive Direct Group of Insurance Companies continues its commitment to making auto insurance easier by becoming one of the first auto insurers to enable customers to sign purchase documents electronically via computer - making the process of purchasing a policy online easier and faster. The electronic signature, or "e-signature," is a technological leap forward because it can replace a "wet" signature, in which a customer has to physically sign a paper document. Progressive Direct, which sells directly to customers online and over the phone, recently made the capability available to customers in 17 states, with the goal of making it available in all states where Progressive Direct is offered within the next several months.



"Buying auto insurance online is already incredibly convenient, but without the ability to sign policy forms online, at the point of sale, customers still get forms in the mail they have to sign and return to complete their purchase," said Richard Hutchinson who, as a general manager for Progressive Direct, oversees the quoting and buying experience. "Being able to sign forms online eliminates most of that follow-up paperwork."



For example, a Progressive Direct customer can now electronically sign the application or, if the customer chooses to have funds automatically deducted from a checking account, the customer can electronically sign the form to authorize Electronic Funds Transfer (EFT). Customers can also sign forms to reject certain coverages online at the point of sale. Without the ability to sign online, in some states, customers would be required to accept - and pay for - the coverages until they physically signed and returned forms. These are just a few instances where Progressive Direct customers can sign the legally required forms online, without the hassle of getting follow-up paperwork in the mail.



"We're always looking for new and innovative ways to make car insurance easier and better for consumers," said Hutchinson. "This is just the latest example of an innovation that gives customers a choice in how they want to interact with us."



In states with the e-signature capability, a Progressive Direct customer who decides to purchase a policy online is offered the choice of signing many of the needed forms with an electronic signature or through the traditional method of having forms sent through the mail. Customers who choose the e-signature option are asked some questions to verify their identity and are then presented with online exact replicas of the required signature forms. Signing a form is as easy as keying in their name and clicking on a "Continue" button.



Progressive Direct customers who opt to sign forms electronically may still have to conduct some post-sale business by mail, such as if they need to provide proof of prior insurance or home ownership. The Companies are developing processes to accomplish those tasks online, too. In addition, Progressive Direct is exploring ways to adapt the technology for use by the Drive Group of Progressive Insurance Companies, which sells to consumers through independent agents and brokers.



Currently, the e-signature capability is available to Progressive Direct's online customers in Louisiana, Pennsylvania, Ohio, Delaware, Indiana, Missouri, Kansas, Wisconsin, Tennessee, Mississippi, Alabama, Nevada, Utah, Colorado, Montana, North Dakota and Vermont. For an up-to-date map showing where e-fulfillment is available, click here.



Use of electronic signatures in commerce became possible in 2000 after Congress passed the Electronic Signatures in Global and National Commerce Act (E-SIGN). The E-SIGN Act adopted the most significant rules of the Uniform Electronic Transactions Act (UETA), which gives electronic signatures the same legal standing as paper signatures.