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Progressive Launches Research Program to Gather Driving Habit Information

Progressive is asking if there is information about how a person drives that is far more predictive of the risk of being involved in a crash? For example, would knowing about the trips one takes each day, or just the trips on Monday, help insurance companies price a particular policy more accurately? What about the amount of time spent driving at highway speeds vs. slower? Does it matter that an insured drives short distances quickly or long distances more slowly?

Progressive Direct is taking what it believes to be the next big step in the evolution of auto insurance pricing by inviting its customers throughout the country to participate in a voluntary research program that will gather driving habit information. Customers who choose to participate will install in their car a small device called a TripSensor(TM) that will record information about how often, how fast and when their vehicle is driven, along with information about acceleration and braking.

Using the information collected by the TripSensor, Progressive Direct expects to find data that will help it to continue to advance the science of auto insurance pricing.

For helping with its product research and development efforts, Progressive will reimburse customers $50 for six months of data from each car in the program. Customers may install a device in as many cars as are insured with Progressive Direct and may sign up for multiple six-month terms. Progressive Direct's goal is to collect a substantial amount of information from a representative sample of U.S. drivers in the next couple of years. All driving information is shared voluntarily with Progressive and will not affect the cost of the customer's current auto insurance policy.

"Today, auto insurance pricing is all about using data about you and people like you to determine a price that will cover the cost of the risk you present," said Dave Huber, product development manager, Progressive Direct. "We've been constrained in the types of data we can use because it's the only information we could gather. We're breaking through that barrier and using technology to gather different data to see what it tells us."

This research program is the latest in Progressive Direct's product research and development efforts and uses technology currently deployed in a usage-based auto insurance discount pilot program underway in Minnesota. Called TripSense(SM), drivers in the program are eligible for a discount on their renewal policy if they choose to send their driving data to Progressive.

"We are continuously looking for ways to make car insurance more competitively priced and easier to use," said Huber. "We believe that if we could know more about how you drive, we could charge you a rate that more accurately reflects your driving characteristics and, therefore, your insurance needs."

The Progressive Group of Insurance Companies, in business since 1937, ranks third in the nation for auto insurance based on premiums written. The products and services of the Progressive Direct Group of Insurance Companies are marketed directly to consumers by phone at 1-800-PROGRESSIVE and online at progressive.com through the Progressive Direct(SM) brand.

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