Progressive® Insurance Survey: 63% of Drivers Don’t Know They Pay Higher Car Insurance Rates to Subsidize Bad Driving of

  Progressive® Insurance Survey: 63% of Drivers Don’t Know They Pay Higher Car
  Insurance Rates to Subsidize Bad Driving of Others

New “Rate Suckers” national marketing campaign educates, empowers consumers to
                         take control with Snapshot®

Business Wire

MAYFIELD VILLAGE, Ohio -- April 8, 2013

Would you be upset  to learn you’re paying more for car insurance because of
others’ bad driving habits? Progressive® Insurance recently surveyed 500
consumers about their knowledge of auto insurance pricing and found:

  *63 percent of respondents didn’t know that the bad driving of others
    affected their car insurance rates
  *Men were less likely than women to think bad drivers affect everyone’s
  *At 30 percent, young consumers (ages 18-34) had the lowest awareness of
    any age group
  *89 percent of respondents said they would be upset if they found out
    they’re paying more to offset the costs of underpriced drivers

In its new, national integrated marketing [ ]campaign launching today,
Progressive brings a problem most drivers don’t know they have into sudden
focus. In the ads, which will complement the Superstore campaign currently in
the market, “Rate Suckers” jump and attach themselves to passing cars. The
solution is Snapshot, which repels Rate Suckers once plugged into the car’s
onboard diagnostic port.

“A Rate Sucker is simply an over-the-top manifestation of an underpriced
driver and can be anybody—your mom, the guy next door, the waiter at your
favorite restaurant,” said Jeff Charney, Progressive’s chief marketing
officer. “We all probably know somebody we’re subsidizing. Snapshot helps
solve that problem; showing consumers that their good driving can reduce the
impact other drivers have on their rate. This campaign is our line in the sand
to the industry and a wakeup call to consumers.”

Insurance companies commonly price consumers by comparing them to drivers with
whom they share basic characteristics, like age, gender, or vehicle year, make
and model. These factors do not directly reflect individual driving habits,
but until Snapshot, there wasn’t a simple, reliable way to include how a
driver actually drives when calculating a customer’s rate. The result: Rate
Suckers paying less than the risk they present, and good drivers paying more
to cover the costs.

Progressive introduced Snapshot to give drivers a way to save more by showing
they drive safely. Snapshot measures the number of times a driver brakes hard,
the time of day and the number of miles they drive. With more than 6 billion
miles of driving data, Progressive has found that adding these key driving
behaviors predict the likelihood of a claim far better than traditional
insurance rating variables alone, enabling Progressive to provide larger
discounts, averaging $150 annually, to lower-risk drivers.

“It seems obvious, but the best indicator of someone’s likelihood to get into
an accident is their actual driving behavior,” said Dave Pratt, general
manager of usage-based insurance at Progressive. “Having that information
helps us provide a more personalized rate that gives people who drive safely
the discounts they deserve. Not surprisingly, most customers who try Snapshot
save money, are happier, and stay with us longer.”

To view the Rate Suckers TV ad, directed by Zombieland’s Ruben Fleischer,
visit For more information about the integrated
campaign which will compliment Progressive’ existing Superstore campaign,
visit To learn about Snapshot, visit

About Progressive

The Progressive Group of Insurance Companies makes it easy to understand, buy
and use auto insurance. Progressive offers choices so consumers can reach it
whenever, wherever and however it’s most convenient—online at,
by phone at 1-800-PROGRESSIVE, on a mobile device or in-person with a local

Progressive offers insurance for personal and commercial autos and trucks,
motorcycles, boats, recreational vehicles and homes. It’s the fourth largest
auto insurer in the country, the largest seller of motorcycle insurance and a
leader in commercial auto insurance. Progressive also offers car insurance
online in Australia at

Founded in 1937, Progressive continues its long history of offering shopping
tools and services that save customers time and money, like Name Your Price^®,
Snapshot^® and Service Centers.

The Common Shares of The Progressive Corporation, the Mayfield Village,
Ohio-based holding company, trade publicly at (NYSE:PGR).


Progressive PR
Steve Kaczynski, 440-395-1008
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