Progressive Insurance is launching its MyRate tracking device in Kentucky this week, according to Alex Davis from the Courier-Journal. The product is a small computer that plugs into a car’s diagnostic port under the dashboard (for cars built after 1996) and tracks a person’s driving habits. Based on those results, individual auto insurance premiums will be calculated
Behaviors tracked by MyRate include:
- How often a driver slams on the brakes
- How often a driver accelerates rapidly
- When a vehicle is used
- How many miles are driven
The optional device doesn’t include a GPS system, so it can’t track where you go.
MyRate costs $5 extra per month. Customers recieve a 10% discount for the first six months after they sign up, after which premiums are adjusted based on tracking results. According to Alex, most people will save about 10-15% on their premiums if they participate on the program. People will save money on Kentucky auto insurance
for a car that is only used on weekends, for example. However, beware that some individuals’ premiums may increase
under the MyRate program.
Progressive is eventually planning a national rollout of the MyRate program, which is currently offered in seven states. On average, one in four customers in eligible states have opted in.