Bob McMillan, Business Development Leader, Progressive, said: "Usage- based auto insurance is rather simple, really. The less you drive, the less you pay. It's the first-ever auto insurance product that gives consumers control over how much they pay."

The system bills consumers each month based on vehicle usage. The information is reported back to Progressive using a combination of Global Positioning Satellite (GPS) and cellular technology installed in the vehicle.

The system has been successfully tested in Texas since 1998. There, hundreds of consumers have chosen usage-based auto insurance over a 'traditional' auto insurance rating system. In Houston, Autograph has been shown to save consumers an average of 25 percent compared to what they were paying using a traditional auto insurance product.

"Our usage-based approach to auto insurance is producing savings for lots of people," McMillan said. "In fact, people who live close to work or have a second or third car that isn't used as much are seeing savings of up to 50 percent on their auto insurance premium."

"The test proved the usage-based system is feasible from a technology standpoint and consumers liked the control and cost savings," said McMillan. "We've concluded the test to move forward focusing on integrating our systems, forging alliances with companies that can provide technology embedded in the vehicle and obtaining necessary state regulatory approval for a wider rollout."

Progressive, with headquarters in Mayfield Village, Ohio, is the nation's fourth largest auto insurance company.

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