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Auto insurance program rewards people for safe driving

Posted On Wed, November 11, 2009

When it comes to auto insurance, how a person drives could affect the price they pay for policies.

Recently, insurance provider Progressive introduced a new program that will reward them with cheaper auto insurance rates based on the way they drive their car. The program, which is called MyRate, is now available to drivers in Rhode Island.

Richard Hutchinson, who is the general manager of the program, said it is designed for people who drive less and during low-risk times. It's also for people who stay aware of other people with whom they share the road.

"They don’t make fast lane changes or follow too closely behind other drivers so they don't have to over-react or slam on the brakes," Hutchinson said.

Through taking part in MyRate, auto insurance customers receive a special device that plugs into their car. The device can detect how much the car is driven, when it's driven and whether drivers are taking part in risky behavior.

Many auto insurance companies may offer discounts for people who use their cars less. Recently, the state of California introduced a pay-as-you-go driving program, which will base some auto insurance rates upon the actual miles a person drives.

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