How Does Progressive's MyRate Plan Work

Progressive's MyRate plan is a simple program that will let your driving habits (among other factors) dictate the amount of premium you have to pay. It is a personalized program that rewards safe drivers a lower insurance premium than other comparable drivers.

The MyRate Device

The MyRate plan works by plugging a device (Progressive calls it the MyRate Device) into your car's diagnostic port. This device will wirelessly send data to Progressive's database where the data is analyzed to determine the amount of discount that you're eligible for.

The MyRate Device will analyze and collect data about average vehicle speed, total and average mileage driven as well as other driving habits like hard braking to determine your driving characteristics. This data is then analyzed by Progressive to determine if you are eligible for a discount on your next insurance premium.

Based on these facts, the MyRate plan will favor safe drivers who only travel occasionally. The device will monitor the time of day when you drive, as rush hour drivers are more prone to vehicle accidents in this time of day. Night drivers or those who drive late at night are also prone to vehicular accidents and the device will monitor this as well.

The idea of the plan is to give you a more personalized approach when it comes to choosing car insurance. It's a well known fact that car insurance premiums will escalate if you have a poor track record when it comes to your driving habits. The MyRate plan is thought to encourage safe driving among participants in the program, as any reckless activity is monitored by the MyRate Device and will be a reflection of the next insurance premium you have to pay.

Enrollment in the MyRate Plan

After enrolling in the MyRate program, you will receive a package that contains the MyRate Device, along with instructions on how to use it so your driving information can be shared with Progressive. The package is said to arrive in seven to 10 working days. Installation of the MyRate Device in your vehicle's diagnostic port is easy and requires no special tools to attach. The device will work on most recent model vehicles that have a diagnostic port built in. Old model cars built after 1996 are compatible to use with the MyRate Device.

The data can be viewed any time at Progressive's website. The appropriate discount will also be reflected on the website, which is based on your driving habits that are collected by the device.

This is a great way to properly adjust your insurance premium, because a fair and accurate assessment of your driving habits can be made by Progressive. The discount will vary from state to state, but up to a 15% discount is to be expected as a result of your safe driving.

The MyRate plan is initially available in 20 states across the U.S. Additional conditions and fees associated with the MyRate program will vary according to state.

As with all things pertaining to your insurance policy, proper research and knowledge will determine the right kind of insurance for you. The MyRate program is an ingenious way of enticing drivers to drive safely when on the road, while giving a chance to decrease insurance premiums by the time of renewal.