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Pennsylvania balks at car insurer’s habits-based plan

Posted on July 16, 2010 by pogowasright.org

Jeff Gelles reports:

If you’ve ever seen “Flo,” the cheerfully offbeat cashier in Progressive Insurance’s ad campaign, you probably know her shtick: that when it comes to auto insurance, Progressive strives to be a little bit different, too.

But Progressive’s latest attempt to distinguish itself in Pennsylvania – a plan to offer rates based on drivers’ habits, determined by connecting wireless monitors to their cars’ computers – has run into a roadblock.

The Ohio company says its usage-based “MyRate” plan offers drivers in other states, including New Jersey, discounts of up to 30 percent if they drive fewer miles, stay off the roads during the accident-prone hours after midnight, and avoid hard braking.

But Pennsylvania officials and Philadelphia’s consumer advocate raised questions about the plan, which Progressive says it has temporarily withdrawn.

Read more on Philly.com

Category: BusinessSurveillance

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