In an effort to fine-tune its auto policy underwriting, an Ohio insurance giant said it will pay its policyholders $50 if they install a tiny device that records the speeds at which they drive.

Dave Huber, product development manager for Mayfield Village-based Progressive Direct, said policyholders are being contacted over the Internet with the aim of securing 15,000 participants willing to provide six months of data.

Those who agree to take part, he said, will be mailed a matchbox-sized device called a "TripSensor," which plugs into the onboard diagnostic port that manufacturers have included in all 1996 or newer vehicles since it was mandated by the U.S. Environmental Protection Agency for emission testing.

Mr. Huber said the device, which is generally attached to a port under the steering column, will record the vehicle's speed every 10 seconds. Progressive said it will also monitor when the vehicle is driven.

"We're interested ultimately in distance. We know folks who drive more are more likely to be in an accident. We will know the speed and we can calculate distance," he explained.

"The whole purpose is to collect driving data to try and figure out if there is something about driving behaviors that is indicative of risk. We'd like to improve on the science of underwriting and pricing," said Mr. Huber.

The aim, he said, is to look beyond the types of data historically used to underwrite auto insurance such as gender, age and accident history.

Mr. Huber speculated that the data might shed some light on the difference in risk between two drivers who take different numbers of trips each year, but each amass the same amount of annual mileage.

"Are people who take fewer, longer trips different [risks] than those who take more, shorter ones?" he wondered. Mr. Huber said the data could provide some evidence as to whether people are more likely to get in an accident close to home.

Drivers who accept the monitoring device will be notified at the end of six months that they will receive $50 if they are willing to share their data by mailing in the sensor or uploading it and sending it in by e-mail. Mr. Huber said the data will be for research only and would not be used to change participants' rates.

The latest research program, Mr. Huber said, is an outgrowth of a usage-based auto insurance discount pilot program that is the result of a study in Minnesota.

Called TripSense, drivers in the program that began in August 2004 are eligible for a discount on their renewal policy if they choose to send in driving data to Progressive concerning how far they drove and when they drove.

Based on Insurance Institute of Highway Safety data, driving at some times of the day is more dangerous, "so if you're driving in a low-risk time, you're less likely to have an accident. The discount depends on number of miles and when you're driving.

"High risk would be 2 a.m. on a Saturday, low risk 1 p.m. on a Wednesday," Mr. Huber said.

He said participants in the latest study will be able to go on a Web Site that provides information about it as well as photos and directions showing how to plug in the sensor.

Progressive Group of Insurance Companies said it ranks third in the nation for auto insurance based on premiums written.

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Progressive Will Pay For Driver Speed Info

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