Progressive Insurance Survey: Many Consumers Think Pricing Auto Insurance on Actual Driving is a Fairer Approach

A survey of 500 consumers conducted by the Progressive Group of Insurance Companies reveals that the majority of participants believe UBI is a fairer way to price insurance, versus the traditional insurance rating variables such as age, geographic location and driving history.

According to a release from the company, highlights of the survey include:

Eighty-four percent believe bad drivers should pay more for their auto insurance.

Nearly 80 percent of consumers agree that usage-based insurance is a fairer way to price insurance.

Ninety percent of consumers ages 18-34 are willing to try usage- based insurance.

More than half don't realize they're paying higher rates due to others' bad driving and 85 percent would be upset to learn they're being charged more because of it.

"We're committed to helping people be safer and smarter drivers, and a big piece of that is educating consumers on how the behavior of other drivers impacts their wallets," said Dave Pratt, general manager of usage-based insurance for Progressive. "Consumer awareness of the benefits of UBI continues to grow, and we're encouraged as we see new drivers, including young drivers, seek a more personalized rate that allows us to award safe drivers with discounts they deserve."

In conjunction with the survey, and following a successful national advertising campaign launched in April 2013, Progressive brings disruptive new creative to market with its second round of "Rate Suckers" TV spots in a continued effort to shed light on a problem most drivers don't know they might have. The new ads show "Rate Suckers" attaching themselves to the car of a driver who was previously unable to avoid paying for the bad habits of others around him. The solution is Snapshot, which repels the Rate Suckers once plugged into the car.

"People are angry that they're paying more for insurance because of the bad driving habits of other people, and they have every right to be - it's just not fair," said Progressive Chief Marketing Officer Jeff Charney. "The original Rate Suckers campaign was our wake up call to consumers to take control and stand up for their good driving behavior. After seeing the positive reaction consumers had to that initial campaign, we decided to turn up the volume with a new round of disruptive ads. This jarring creative will shake people by the shoulders and let them know they don't have to take it anymore. Go get the rate you deserve, the rate you've earned."

Snapshot is Progressive's optional Pay As You Drive insurance program that provides drivers with personalized pricing based on their safe driving habits. The program is best for those who drive less and in safer ways. Drivers currently earning a discount with Snapshot are saving an average of $150 per year and Progressive plans to roll out a new program to additional states this year offering a discount just for signing up, as well as bigger discounts for more drivers.

Progressive provides insurance for personal and commercial autos and trucks, motorcycles, boats, recreational vehicles, and homes. Home insurance is underwritten by select carriers, including its majority-owned subsidiary, American Strategic Insurance (ASI).

More Information:

http://www.progressive.com/auto/snapshot

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