Program tracks daily driving habits to give drivers personalized insurance rates

Calli Fisher-News 4

A new car insurance program that rolled into the Silver State Monday bases your rate on your daily driving habits. Progressive's MyRate program tracks your driving behavior to determine a personalized insurance rate. Drivers that opt into the program will be given a wireless device that plugs into the car. The company then tracks information like the times of day the car is used, mileage, and speed, braking and acceleration rates.

Progressive says the device is not a GPS unit, so they cannot track the cars location or who is actually behind the wheel.

Company representatives say it gives people the opportunity to prove they deserve a lower rate.

"For people who don't drive much, it allows them to say ‘hey, look, I'm not a heavy user here and I could pay less.' Or for people who drive particularly safely, they can show that they do, so they can make a case to say I deserve a good discount," Richard Hutchinson, Progressive's General Manager for usage-based insurance, said.

Hutchinson says qualified drivers could see a 30 percent decrease in their rates.

Nevada Insurance Commissioner Scott Kipper says many Nevadans could see rate decreases with this program.

"We in Nevada have some of the higher rates in the country. I think that any time that we can look at risk and risk management, not just automobile insurance but in all lines of insurance, that gives our consumers a great opportunity to save a little money and still get the coverage that they need," Kipper said.

This behavior-based car insurance may not be right for every driver though because of the scrutiny on a person's daily driving habits. The best candidates will be those who are considered less risky and do not use the car very often.

Progressive says drivers that put less than the average 12,000 miles a year on the car will likely see savings. Habits like driving after midnight could potentially hurt the rate, according to the company and the state insurance office.

"If you stay within the speed limit and don't drive significant number of miles a day then this might be for that particular driver," Kipper said.

The program is voluntary. Company officials say if a person realizes they would not be paying less, they can go back to a traditional policy with no consequences.

The MyRate policies are now available to Nevada drivers who purchase policies directly from Progressive online or by phone.

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