Q & A Time

February 28, 2009 at 07:53 AM #

Ok, I have a scenario.  I'm 26.  I moved last year a few blocks from work and that has significantly cut my driving.  MyRate suggests that the program is ideal if you don't go over 12k miles per year (I think I read that).  Before, I certainly exceeded that but now that I live close to work I think I average right at that (about 1k miles/month).  So I think I'm good there.  I think I'm good on the sudden stops/starts and if I'm not, I can learn to be, right?  From what I understand, after 30 days of having the device installed, you'll start to see how your next policy will be affected.  But you have the remainder of the policy to improve your driving habits and I'm assuming you'll receive a final policy quote for the renewal about a month before the current one expires, right?  So in all, you have about 4 months to adjust your driving habits, right?  Final question, my biggest fear is that I would be penalized for when I drive.  I take transit to work or walk, but when I get home, I often head out for dinner or shopping, so I end up in the mix of rush hour traffic.  How significantly would I be penalized going out in the evenings?  How significantly am I penalized if I actually exceed the suggested average of 12k miles per month?

Lots of questions, but I'm sure others are wondering too   

Either way, kudos on being innovative.  Now I'd love to see an iPhone app where we could pull up proof of insurance, see other details of our policy, and maybe even progressive could integrate vehicle maintenance in the app, so when we're out getting our oil change, we can open up the app and document it?  Sounds progressive, right?  ;)

J

March 14, 2009 at 23:41 PM #

@ comment posted March 5, 2009:

You really understand the program well. Thanks for paying such close
attention! Driving fewer than 12k miles per year certainly will help earn
you a discount, but you are right that sudden starts and stops matter, too. We think that 4 months is plenty of time to make adjustments in your driving
habits, but to be honest, we really don't know yet exactly how improving
your driving works. I would love to get your feedback on what information
you find helpful and anything you find that makes a difference in your
discount. As for time of day, while again you are right that rush hour is
worse than the middle of the day, what makes by far the most difference is
driving late at night. If you drive between midnight and 4 a.m. once per week
or more, MyRate probably is not a good program for you.

As for mobile applications, there is a growing body of exciting stuff out
there. We want to make sure we invest in things people really want and will
use. So stay tuned.

Sounds like you've thought things through carefully and are off to a good
start with the program. Thanks for the feedback, and good luck!

- Steve McKay

WebX

March 22, 2009 at 09:45 AM #

I just found out about this program while getting a rate quote from Progressive (which by the way was considerably lower than my current rate so I'm seeing Progressive in my near future) and think it's a pretty cool idea, just not sure it would be for me, here's why: my husband works as a sales broker therefore he relies on the car for his sales route. While the miles driven are not excessive as the routes are concentrated within a very small and specific area, it's not the same as driving to and from work.

So I wonder if having My Rate would hurt us by driving up our insurance costs. Any thoughts?

Thank you in advance.

Isabel

April 8, 2009 at 19:16 PM #

@ comment posted March 26, 2009:

The best guidance I know to give you is that MyRate probably is not for you if you drive after midnight once per week or more, you drive more than 15,000 miles per year on non-highway roads, you are always late and in a rush, or you tend to follow other cars closely. If you drive fewer than 9,000 miles per year, there is a good chance you will save. Keep in mind that you may get a discount in your first policy term (the specifics depend on what state you live in), and at worst you will have nothing to lose. If you think you are likely to save, I encourage you to sign up for the program and see how you do. If you decide to leave the program after your first policy term, just send the device back to us. You will not be penalized in future terms.

- Steve McKay

WebX

April 17, 2009 at 01:32 AM #

Hi,

Interesting insurance product, well done!

I do have a question: I understand that insurance fees go down as I drive more safely. So, theoretically, I could only plug in MyRate for trips where I drive safe, and leave it unplugged when I am in a hurry. How does MyRate account for that?

Jan Willem

Jan Willem

April 17, 2009 at 16:47 PM #

Hi Jan --

Actually, the MyRate device records when it has been unplugged. To be eligible for a discount, we require that the device be plugged in almost all the time and not plugged/unplugged repeatedly.

Thanks!

- Steve McKay

WebX

May 1, 2009 at 05:49 AM #

So why does the myRate website project me to have a 33%-36% discount, but when I got my renewal, it is only a 22% discount?  I checked the site the same day I got the renewal notice and it still says 33%, but I only get 22%.  These are the practices of a very misleading company

Paul

May 10, 2009 at 22:09 PM #

Hey there, im really enthusiastic about the my rate program. How is the cost of the premium for the MyRate program determined for the first time (when i first get the device, since you would have no information as to how i drive yet). Next, will drivers under the age of 25 be eligible for this. And lastly, when do you think it will be available in New York City. Ive been asking around but i never get a full answer to any of these questions so it would be really helpful if you can answer these.

My current situation: I need a car for VERY limitted driving. I would drive may be at most 4-8 times a month, and only about 60 miles each of those days. Other times the car would be in my garage not doing anything.  Insurance for my age is really high, yet i dont even drive the car most of the time. I bought the car for $1,000 and im going to have to pay over $4,000 a year on insurance on a car that i dont even drive most of the time.

When do you think the program will be available in New York City, and do you think the program will be good for me?

khan sakeeb

May 12, 2009 at 19:35 PM #

@ comment posted May 13, 2009:

All good questions, Khan:

1. How is the first term premium determined?
We consider all of our usual factors for determining rate -- age, gender, vehicles, etc. -- then in most states we add a $5 per month technology fee and give a 10% discount on most coverages. The average MyRate customer saves about 6% on the first term premium. (Some states have no technology fee today, other have different new business discounts. See your specific state details here: http://www.progressive.com/myrate/.

2. Will drivers under age 25 be eligible?
All ages are eligible.

3. When will MyRate be available in New York City?
Because auto insurance is regulated by states, we have to roll out any new program one state a time. The regulatory approval process can be long and unpredictable, so, unfortunately, it's hard to say exactly when we'll go live for drivers who live in the state of New York. I certainly hope we get there by sometime in 2010. Rest assured we'll let you know when the time comes.

4. Would MyRate be a good program for you?
Vehicles driven fewer than 9,000 miles per year are very likely to save with MyRate, and it sounds like you drive a lot fewer miles than that. So, yes, I suspect you would see significant renewal discounts with MyRate.

I hope these answers help. Thanks for your enthusiasm!

- Steve McKay

WebX

June 4, 2009 at 11:53 AM #

I see were it says that if u drive passed midnite u would b penalized, so basically it wouldn't b for me even though I live near my home (about 3 miles away) but I do tend to get off anywhere between 12 and 3 a.m. now on my days off I go no where, but just because I drive late it wouldn't work right???

zythom

June 7, 2009 at 05:12 AM #

@ comment posted on June 6, 2009:

While it's true that most people who drive after midnight once per week or more are unlikely to save with MyRate, it's certainly not the case with everyone. If you drive very safely, rarely if ever slowing down quickly between midnight and 4 a.m., you could save a lot.  Our current guidelines are the most accurate advice we can give, but you'll be the best judge of whether you are likely to save.

- Steve McKay

WebX