Alabama Gets New Auto Insurance Program

Recently, nationwide auto insurance provider Progressive has reported its introduction of its MyRate auto insurance program to the state of Alabama. The program encourages safer driving while, simultaneously offering motorists the opportunity to reduce their auto insurance rates.

Policyholders who elect to participate in the MyRate program will get a small wireless electronic transmitter to attach to their vehicles. The transmitter comes with a $30 fee, to be paid at the beginning of each new policy period. The transmitter will send data about the policyholders’ driving habits to Progressive’s data processing centers. The information that will be sent includes how often the car is being driven. It will also transmit data about how appropriate the vehicle’s driving is to the roads and conditions it’s being driven through. Data about the times of day that the vehicle is being driven during will also be transmitted. From this information, Progressive will determine the risk inherent in a given policyholder’s driving, whether for accidents or other types of vehicular damage.

Participants will have the option to choose which of their vehicles to use for the program, if they own multiple vehicles. For instance, participants can save money on insuring two cars, if one of the cars is driven more frequently or in a riskier way, by enrolling only the less-risky car in the program.

The MyRate program lets Progresive precisely target its policyholders for how much risk they pose. In this way, the company will be able to offer lower auto insurance rates to low-risk drivers, while penalizing the higher-risk drivers with higher rates. Thus, Progressive will reduce its losses from policyholders’ claims, while policyholders will be able to reduce their rates by driving more safely.

Participants in the MyRate program can get reductions of up to 40% from their auto insurance rates, depending on how safely they drive. Alabama drivers who switch to Progressive and elect to participate in the new program will be able to get an additional guaranteed 10% rate reduction for their first term, just for signing up.

Recent Additions:

• AARP Gives Oregon Seniors New Way to Save on Auto Insurance
• How Your Claims History Affects Your Home Insurance Costs
• The Mathematics of Auto Insurance
• Auto Insurance Companies Give Special Discount To Hybrid Drivers
• Auto Insurance Industry May Adapt Pay-As-You-Drive Policy