By Steve Mckay

This MyRate customer's blog shows just what we're aiming for with the MyRate program: saving money for safe drivers.

By Steve Mckay

We recently spoke to a few MyRate customers who are on track for substantial discounts – more than 20% - even though they drive at least 15,000 miles per year, much of it on city roads. How is this possible? Turns out it’s easier than you might think.

First, all of these great drivers plan way ahead – they start slowing down for stop signs long before they get close, and they almost never speed up to make a yellow light. They’re always ready for something ahead of them that might cause them to suddenly stop. And they stick to very consistent routines – they take the same roads to the same places at the same times every day, so they know exactly what to expect.

Some of the people we spoke to are also very aware of the condition of their car. They’re mindful of their brakes, and try to put as little wear on them as possible.

One word that was noticeably absent from our discussions was “fun.” Some of the best drivers compared their driving habits to those of “Sunday Driver”; another said they were driving “as if I’m still in driving school and the instructor is next to me” – no “wind in my hair” or “exciting acceleration around a turn” here. It made me think of how I like to take a different route to work sometimes just for variety and because the winding roads are more fun. Probably not the wisest choice, as winding roads mean I’m slowing down too fast and too often.

The good news here is, improved safety is within reach for many of us. And safety, albeit potentially dull, is a better option than dangerous fun. If it’s motion thrills you’re after, stick to roller-coasters. Meanwhile, we’ll keep talking to, and learning from, the best drivers in America.

This week we pleased to welcome guest blogger Jen Walker, a product analyst here at Progressive. Jen is one of the most dedicated, practical environmental advocates we know. She has worked green practices into her life in very sensible ways. We asked her what she thought about MyRate.

By Jen Walker

When I was a kid, one of my favorite songs was Kermit the Frog’s “It’s Not Easy Being Green.” Boy, was he right!

As an adult, I’m doing everything I can to limit my carbon footprint by living as green as possible. I recycle. I buy (and even grow my own) organic food. I’ve replaced my regular light bulbs with low-energy bulbs. I make sure I unplug cell phone and computer chargers when I’m not using them. I even bought a more fuel-efficient vehicle, which my family and I drive 99 percent of the time. Our other vehicle is a truck, which we use only when we need to haul big stuff, like trees and mulch. We barely put 3,000 miles a year on the truck (if that), and yet, we pay the same amount of premium we’d pay if we drove it everyday. Wouldn’t it be nice if we only had to pay based on usage? Well, with MyRate, a usage-based premium is possible, making “being green” a little easier…and cheaper.

By Steve McKay

… and not just for insurance geeks. The MyRate team is forever attending conferences on cutting-edge auto technology featuring laser displays that appear in front of the windshield, Internet access, floor mats that change color, etc.

My colleague in charge of design has lots of ideas for things the MyRate device could do: glow, talk, tell you when a spark plug is out, speak like Mr. T.

Is it too much? Do you care? Or are all these bells and whistles too distracting? What do you wish your car could do?

By Steve McKay

Q: How does the device know who is driving the car?
A: It doesn’t.

Q: Is it OK if I drive fast, follow closely, and slam on my brakes a lot if everyone around me is doing it, too?
A: No.

Q: How much discount will I lose for speeding? I love to speed.
A: None. Speed does not matter in determining discounts — unless your speeding makes you slam on the brakes all the time as you approach other cars.

Q: Can I put one in my husband’s car and not tell him?
A: Hmmm … maybe that question is better put to a couples counselor! Only the registered owner of the car should plug in the MyRate device.

Q: I like to run red lights late at night when no one is around. Is that OK?
A: No. That’s a bad idea, day or night.

By Steve Mckay

As an insurance company, two of our top priorities are allocating risk and reducing costs. As a consumer, what are your priorities? Safety? Saving money? Getting a fair deal? Probably all of the above, right?

Every so often, consumer and corporate priorities mesh so well that the resulting effect extends far beyond the company and consumer — it actually impacts society. That’s our hope with MyRate. We want to have a program that prompts changes in behavior that are good for everyone.

Last week, one of my colleagues actually commented in a meeting, “If we do this right, it really could make the world a better place.” A noble and ambitious goal, to be sure. But that’s really a byproduct of what MyRate is all about. Our focus is being responsive to your particular needs, and making this program work for you. That’s why we’re so keen on receiving your feedback. We want MyRate to serve you.

And if we make the world a safer and better place in the process, so be it.

By Steve McKay

Did you know that Progressive’s My Rate program doesn’t factor in speeding when determining discounts? We consider how frequently, how safely, and what time of day you drive. Many drivers feel that they need to speed in order to keep up with the flow of traffic and be safe. It turns out that the early government research on speeding, from back in the 1960s, found that what causes accidents is speed relative to traffic flow, not absolute speed (See, Solomon D. 1964. Accidents on main rural highways related to speed, driver and vehicle. Washington, DC: US Department of Commerce & Bureau of Public Roads). And with MyRate, we observe something similar. Many people who do well on the "how safely" part have fewer accidents even if they tend to speed. You might conclude that they must be keeping up with traffic flow well. Consider, too, that going 50 mph can be much too fast if the highway is jammed or road conditions are bad.

So what to do about speeding tickets? Every insurance company still rates on those. And it’s easy to determine who has broken the rule. Would you rather have violations for going faster than traffic allows? Should insurance companies consider speeding tickets at all?

By Steve Mckay

In bad traffic, no less. Yikes! 

Clearly, MyRate is NOT for him. 

Any other horrific driving-while-doing-something-else stories?

By Steve Mckay 

I read another blog the other day that wondered how the MyRate device transmits data back to “PHQ” (Progressive headquarters, I presume ... no doubt where we conduct our covert ops against Dr. Evil). The truth is, the MyRate device is equipped with nothing more than a cell phone chip that sends text messages. It talks to the car’s computer, gets speed and time of day, and texts that to Progressive. Not exactly James Bond.

By Steve Mckay

I can draw you a graph. But describing is harder.

There is a less-traveled, back way into my office. The road curves a little, so it’s fun to drive. I brake hard whenever I come to the stop sign at the end because I’m mostly thinking about work. If I take the “front way” (read: slower and boring). I almost never brake hard.

That’s safe driving.